Ceteris paribus, which of the following is most likely to shift both the demand and the supply curves?
A. The price of the good itself.
B. Expectations.
C. Income.
D. Technology.
Answer: B
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In the model of monopolistic competition, if firms have ________ average cost curves, then opening trade will cause ________ firms to ________ the industry
A) different; less efficient; exit B) different; more efficient; enter C) symmetric; less efficient; exit D) symmetric; more efficient; enter E) symmetric; less efficient; enter
For any pair of countries, there is only one single exchange rate that can lead automatically to both countries realizing the gains from specialization and comparative advantage.
Answer the following statement true (T) or false (F)
Other things the same, the aggregate quantity of output supplied will increase if the price level
a. is lower than expected so that firms believe the relative price of their output has increased. b. is lower than expected so that firms believe the relative price of their output has decreased. c. is higher than expected so that firms believe the relative price of their output has increased. d. is higher than expected so that firms believe the relative price of their output has decreased.
Which of the following statements about wages and the quantity of labor supplied is true?
a. The higher the wage rate, the lower quantity of labor supplied will be. b. Wages and quantity of labor supplied have a negative relationship. c. As the wage rate increases, the quantity of labor supplied increases. d. A decrease in the wage rate leads to an increase in the labor supplied.