In the specific factors model, a 5% increase in the price of food accompanied by a 10% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in
the welfare of the fixed factor in the production of cloth. A) an ambiguous change; a decrease; an increase
B) an ambiguous change; an ambiguous change; an ambiguous change
C) a decrease; an ambiguous change; an ambiguous change
D) an increase; a decrease; an increase
E) an ambiguous change; an increase; a decrease
A
You might also like to view...
Salvador grows orchids to sell to local florists. When Salvador began raising his current crop of 1,000 orchids, he could sell them for $20 per plant, and he incurred shipping costs of $3 per plant. His cost of raising orchids is $8 per plant
When his crop was ready to ship, florists were only paying $9 per plant. Use marginal analysis to determine Salvador's best course of action given the drop in the price of orchids.
Section 2 of the Sherman Act prohibits ________.
A) an attempt of one firm to become a monopoly through the use of unreasonably exclusionary conduct B) market division C) price fixing D) monopolies
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.
a negative side of long-term contracts is
What will be an ideal response?