Last year a firm made 1,000 units of its product available at a price of $5 per unit. This year the firm will still make 1,000 units available, but only if the price is $7 per unit. What is most likely to have happened?
a. Supply has increased
b. Supply has decreased
c. Demand has decreased
d. Quantity demanded has increased
e. Quantity supplied has increased
b
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Use the following market data to answer the question below.Price per UnitQuantity Purchased by ConsumerQuantity Sold by Producer$52,0000101,800300151,600600201,400900251,2001,200301,0001,500In the market shown in the table, the equilibrium quantity is
A. 1,400. B. 1,200. C. 900. D. 1,600.
You should specialize in the production of a good if you have
A) an absolute advantage. B) more capital resources than your trading partner. C) more human resources than your trading partner. D) a comparative advantage.
Diminishing marginal returns to labor means
A) that each additional worker costs more. B) that each additional worker produces less than the previous worker. C) that each additional worker costs less. D) that total product grows at a constant rate when workers are added to production.
If predictions that the world will run out of oil or petroleum in the next century become true, then:
A. The world would run out of energy B. Alternative sources would become viable C. Economies would grind to a halt D. Population will decline due to starvation