Why are producers are willing to offer greater quantities for sale at higher price because of?
What will be an ideal response?
They have the incentives to pay the increasing opportunity cost of resources necessary to attract them from alternative uses
You might also like to view...
Based on data from the U.S. economy, the marginal propensity to consume is about
A) 0.95. B) 0.75. C) 0.60. D) 1.10. E) 0.87.
If a 1 percent increase in price leads to a .7 percent increase in quantity supplied in the short run, the short-run supply curve is
a. elastic. b. inelastic. c. unit elastic. d. perfectly inelastic.
As interest rates increase, the quantity of loanable funds that are supplied to the loanable funds market
a. increases because people will be attracted by the higher rate of interest b. decreases because businesses borrow less c. increases because businesses borrow less d. decreases because people save less e. decreases because people will be attracted by the higher rate of interest
In the simple Keynesian model, there are three simplifying assumptions. Among these assumptions is:
A) the price level is flexible B) no foreign sector C) the price level is constant until the economy reaches its full-employment level D) the money supply always rises E) b and c