Suppose there is a flood in St. Louis, Missouri, that destroys several beer bottling facilities. Which of the following would not be a direct result of this event?
a. Sellers would not be able to produce and sell as much as before at each relevant price.
b. The supply would decrease.
c. Buyers would not be willing to buy as much as before at each relevant price.
d. The equilibrium price would rise.
c
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The law of marginal diminishing returns
A) is found everywhere. B) is found only in manufacturing. C) is found only in developed economies. D) is the same as the law of diminishing marginal utility.
Why are checking account balances included in the M1 definition of the money supply?
A. Checking account balances are a traditional form of money that predates paper money. B. Checking account balances are used to make so many payments. C. Checking account balances are backed by gold and silver. D. Checking account balances pay interest.
When interest rates in the U.S. decline, we can expect net capital outflow to:
A. increase. B. be zero. C. decrease. D. be unaffected.
Why is the demand curve horizontal for a perfectly competitive firm?
What will be an ideal response?