Last year due to the increased rainfall there was a plentiful supply of blueberries which caused their price to drop. Bakeries regularly produce and sell blueberry pie. Considering the market for blueberry pies, what factor of supply has been affected, and what was the overall effect on the supply?
A. The price of an input has been affected; supply will increase.
B. The price of an input has been affected; supply will decrease.
C. The new technology has been affected; supply will increase.
D. The number of sellers has been affected; supply will increase.
A. The price of an input has been affected; supply will increase.
You might also like to view...
If an individual receives $10,000 after two years by investing $10,000 today, we can conclude that ________
A) the rate of inflation is zero B) the market rate of interest is zero C) the rate of inflation is negative D) the market rate of interest is negative
A fundamental reason that governments provide public goods is that
A) those goods are subject to the free-rider problem. B) negative externalities are part of the production process of those goods. C) public goods are merit goods. D) those goods are perfectly divisible.
Which of the following is not considered an automatic stabilizer?
a. Food stamp program for people with low incomes b. Welfare program for families with dependent children c. Medicaid, a health program for the poor d. Financial assistance for disabled people e. Unemployment programs that pay benefits to those who lose their jobs
Tax credits for new investment are likely to
A. Increase or decrease physical capital investment, depending on the magnitude of the tax credits. B. Have no effect on physical capital investment. C. Decrease physical capital investment. D. Increase physical capital investment.