The increase in the price of a good would
A. cause a movement along the supply curve to a (lower price, lower quantity) point.
B. cause a movement along the supply curve to a (higher price, higher quantity) point.
C. move its supply curve to the left.
D. move its supply curve to the right.
Answer: B
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Which of the following statements is TRUE?
A) If private saving is greater than private investment, then the private sector has a surplus. B) If private investment is greater than private saving, then the private sector has a deficit. C) If private investment is greater than private saving, then either the government or net export sector must have a surplus. D) All of the above answers are correct.
If a monopoly firm sells to competitive distributors and the distributors have a constant marginal cost, the difference between the wholesale demand curve and the consumer retail demand curve is the ________.
A) average fixed cost of distribution B) marginal revenue of production C) marginal cost of production D) marginal cost of distribution
A binding minimum wage
a. affects employees but not employers. b. lowers the productivity of workers. c. raises the cost of labor to firms. d. All of the above are correct.
Here is a consumption function: C = C0 + MPC(Yd). If MPC is 0.75, then we know that
A) as Yd rises by $1, Co rises by $0.75. B) as Yd rises by $1, C rises by $0.75. C) Yd rises by $0.75. D) as C0 rises by $0.75, Yd rises by $1.