If the price of a substitute increases, which of the following is most likely to happen in the market for the product under consideration in the short run?
A) Supply will increase.
B) Firms will leave the market.
C) Firms will devote more variable inputs in the production of this good.
D) Firms will devote less variable inputs in the production of this good.
C
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Describe the relationship illustrated by the Laffer curve
What will be an ideal response?
Jimmy grows corn. His total revenue and total cost are in the above table. What quantity of corn maximizes his profit and what is his profit? What is the marginal revenue and marginal cost at this quantity?
What will be an ideal response?
On the graph above (and considering the short run only), a combination of a negative demand shock and a negative supply shock may be represented by the movement from point ________ to point ________
A) G; I B) H; F C) H; I D) G; F E) G; H
From 2006 through August 2011, the US dollar fell in value from 8 Chinese Yuan to 6.4 Chinese Yuan. During that time we would say that relative to the US dollar, the Yuan has appreciated in value
a. True b. False