If the price of a good decreases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been
a. a decrease in supply.
b. an increase in supply.
c. a decrease in demand.
d. an increase in demand.
Answer: b. an increase in supply.
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A) public good B) natural monopoly good C) common resource D) private good
In the above figure, if the budget line shifts from RT to RS, the substitution effect is illustrated by the move from
A) a to b. B) a to c. C) b to c. D) T to S.
Your company makes copper pipes. Over the years, you have collected a large inventory of raw copper. The production process involves melting the copper and shaping it into pipes. You also have a large stockpile of pennies
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Refer to the above table. If the price of the good produced is $7, the marginal revenue product of the 11th worker is
A) $700 B) $4200 C) $630 D) $3500