An increase in the price of input used to produce a product will lead to
A) a decrease in the demand for that product.
B) a decrease in quantity supplied of that product
C) a decrease in the supply of that product.
D) an increase in the supply of that product.
Answer: C
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In economics, the term "autonomous" means
A) disposable income. B) non-economic related. C) existing independently. D) cash payments.
What is the income elasticity of demand for an inferior good?
Moving downward and to the right along a linear demand curve, we know that total revenue
a. first increases, then decreases. b. first decreases, then increases. c. always increases. d. always decreases.
Monetary neutrality means that a change in the money supply
a. does not change real GDP. Most economists think this is a good description of the economy in the short run and in the long run. b. does not change real GDP. Most economists think this is a good description of the economy in the long run but not the short run. c. does change real GDP. Most economists think this is a good description of the economy in the short-run and the long run. d. does change real GDP. Most economists think this is a good description of the economy in the long run but not the short run.