In the above graphs a direct relationship is shown by
A) Graph A.
B) Graph B.
C) Graph C.
D) Graph D.
B
You might also like to view...
Which of the following would shift the supply curve for smartphones to the right?
A) an increase in consumer income (assuming that all smartphones are normal goods) B) an increase in the price of a substitute in production C) a decrease in the price of an input used to produce smartphones D) a decrease in the number of firms that produce smartphones
Under what circumstances might a government price ceiling lead to the development of a black market?
What will be an ideal response?
On August 5, 2003, a tragic fire destroyed a large Jim Beam whiskey factory in Kentucky. Assume that the U.S. market for whiskey is perfectly competitive, and that the market was originally in long run equilibrium. What would be the effects of such an incident?
a. An increase in supply would cause a reduction in price, which would then lead to entry of firms. b. A decrease in supply would cause an increase in price, which would then lead to entry of firms.` c. An increase in supply would cause an increase in price, which would then lead to entry of firms d. A decrease in supply would cause an increase in price, which would then lead to exit of firms. e. Price of the whiskey would remain unchanged and the existing firms would continue to earn zero economic profit.
In the long run, what is the most important factor to shift the aggregate supply curve?
a. Input prices b. Output prices c. Productivity growth d. Wage growth