If producers must receive a higher price to be induced to produce any quantity, we can conclude that
A. both supply and demand increased.
B. demand decreased.
C. demand increased.
D. supply decreased.
Answer: D
You might also like to view...
When the automobile replaced horse-drawn carriages as the principal means of transportation, firms producing horse-drawn carriages went bankrupt and permanently laid off all their workers, thereby increasing
i. seasonal unemployment. ii. structural unemployment. iii. cyclical unemployment. A) i and iii B) ii and iii C) ii only D) i and ii E) i only
What is a household's choice set defined as?
What will be an ideal response?
The excess burden of a tax is
a. the amount by which the price of a good increases. b. the loss of consumer and producer surplus that is not transferred elsewhere. c. The amount by which a person's after-tax income decreases as a result of the new tax. d. the welfare costs to firms forced to leave the market due to an inward shift of the demand curve.
In the diagram below, the profit maximizing output level is 
A. 0B. B. 0C. C. 0A. D. It is impossible to say.