A decrease in supply will occur when
A) the supply curve shifts downward to the right.
B) the supply curve shifts upward to the left.
C) the demand curve shifts downward to the left.
D) the demand curve shifts upward to the right.
B
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When the production possibilities frontier bows outward from the origin
A) some of society's resources are unemployed. B) opportunity costs are constant. C) opportunity costs are increasing. D) opportunity costs are decreasing.
In the case of a positive externality, the entire demand curve lies
A. above the entire marginal social benefit curve. B. below the entire marginal social benefit curve. C. above the entire supply curve. D. below the entire supply curve. E. b and c
Static tax analysis assumes that
A) an increase in a tax rate may lead to a decrease in the tax base. B) an increase in a tax rate will lead to an increase in the tax base. C) an increase in a tax rate will leave the tax base unchanged. D) the tax base will always remain unchanged.
Someone says, "Even though the equilibrium wage rate is $8 an hour in the unskilled labor market, if we impose a minimum wage of $10 an hour, no one currently working will lose his or her job." This person must believe that the
A) demand curve for unskilled labor is vertical. B) demand curve for unskilled labor is downward-sloping. C) supply curve for unskilled labor is downward-sloping. D) supply curve for unskilled labor is horizontal. E) none of the above.