A farmer can grow either apples or oranges. An increase in the price of apples ______ the opportunity cost of growing oranges so that the supply curve of oranges shifts ______.
Fill in the blank(s) with the appropriate word(s).
Answer: increases; up and to the left
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Which of the following decreases the supply of labor that competes with union labor?
A) an increase in the minimum wage B) an increase in the demand for imported goods C) new laws that restrict immigration D) All of the above would cause a decrease in the supply of labor that competes with union labor.
In a market characterized by many sellers, if an outsider devises a way to reduce transaction costs it will:
a. benefit both buyers and sellers. b. cause both buyers and sellers to lose. c. benefit the buyers but cause the sellers to lose. d. benefit the sellers but cause the buyers to lose.
Suppose the price of one euro is fixed at $1.00. A Dutch oil company discovers new oil reserves in the North Sea and offers the oil for sale. What is the impact on the foreign exchange market?
a. The dollar price of euros decreases from $1.50 to $1.00.
b. Decreasing demand for European goods shifts D2 to D1.
c. U.S. consumers demand more European goods shifting D1 to D2.
d. The quantity of euros demanded changes from Q2 to Q1.
Which of the following is most likely to occur in the labor market during a recession?
A. Bonuses and promotions become more frequent. B. The growth rate of real wages declines. C. The supply of labor increases dramatically. D. New entrants to the labor market have an easier time finding jobs.