If there are 1,000 rutabaga farms, all perfectly competitive, an increase in the price of fertilizer used for growing rutabagas will
A) have no effect on the total quantity of rutabagas supplied, because no farm has enough market power to raise the price.
B) have no effect on the total quantity of rutabagas supplied, because each farm's supply curve is a vertical line.
C) decrease the total quantity of rutabagas supplied, because each farm's supply curve shifts leftward.
D) reduce the total quantity of rutabagas supplied, because each farm's supply curve is a horizontal line and will shift upward.
C
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A price floor above the market clearing price typically results in I. an excess quantity supplied II. a shortage III. an excess quantity demand
A) I only B) II only C) III only D) II and III only
Movements up along a particular short run Phillips curve are not consistent with: a. Increases in aggregate demand
b. Movements up along the short run aggregate supply curve. c. Movements up along the long run aggregate supply curve. d. Movements up along a particular short run Phillips curve are consistent with all of the above.
Disposable income is the aggregate income minus net taxes that households receive in exchange for factors of production they supply in resource markets
Indicate whether the statement is true or false
Market economies produce outcomes that are
A. virtually ideal in all respects. B. inferior to most other systems. C. far from ideal, in some respects. D. virtually indistinguishable from command economies.