Recall the Application about the decrease in the price of wool in the 1990s to answer the following question(s). In the 1990s, the world price of wool decreased by about 30 percent and prices have remained relatively low since then. In 2012, an organization in New Zealand proposed that sheep shearing be added to the Commonwealth Games and the Olympics as a spectator sport in an effort to increase the awareness and the demand for wool.Recall the Application. As the world price of wool decreased, the quantity of wool supplied by individual ranchers would ________, and the quantity supplied in the world market would ________.
A. increase; increase
B. increase; decrease
C. decrease; decrease
D. decrease; increase
Answer: C
You might also like to view...
Janae was fired from her job with Microsoft in the 2008-09 recession because Microsoft's sales dipped. Janae's unemployment would be best classified as
A) natural unemployment. B) cyclical unemployment. C) structural unemployment. D) sales-related unemployment. E) frictional unemployment.
Using a Cobb-Douglas production function, Y/N = (K/N)b, the marginal product of capital is
A) b(K/N)b-1. B) b(K/N). C) (K/N)b-1. D) (K/Y)b.
What has been the impact of the widespread adoption of automated teller machines (ATMs) on the demand for bank tellers?
A) The demand for tellers has increased. B) The demand for bank tellers has become more inelastic. C) The demand for bank tellers has become more elastic. D) There has been no change because the ATMs and the employees provide completely different services.
Suppose the economy is initially operating at full employment. A reduction in the size of the budget deficit will cause which of the following in the short run?
A. an increase in the price level with no change in real GDP. B. an increase in real GDP and an increase in the price level. C. an increase the price level and a reduction in real GDP. D. a recessionary gap.