The inverse supply curve of coffee beans equals P = -5 - 2rain + Qs, where rain equals the number of inches of rain per year. How much does quantity supplied change when rain increases from 30 inches to 40 inches per year?
A) Qs decreases by 40.
B) Qs increases by 40.
C) Qs increases by 30.
D) Qs decreases by 30.
B
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How do constant returns to scale affect the shape of the long-run average cost curve?
What will be an ideal response?
In the long-run the ISLM model predicts that ________ can change real output
A) only monetary policy B) only fiscal policy C) both monetary and fiscal policy D) neither monetary nor fiscal policy
Seth is a surgeon who goes to Cambodia each summer and donates two weeks of his time to local hospitals. From an economic standpoint, utility is gained by:
A. Seth's patients. B. Seth, knowing he is doing a good deed. C. Seth, knowing the local paper writes a story about his trip every time he comes home. D. All of these are true.
Sophia puts money in the bank and earns a 5 percent nominal interest rate. If the inflation rate is 2 percent, then after one year,
a. Sophia will have 3 percent more money, which will purchase 5 percent more goods. b. Sophia will have 3 percent more money, which will purchase 7 percent more goods. c. Sophia will have 5 percent more money, which will purchase 3 percent more goods. d. Sophia will have 5 percent more money, which will purchase 7 percent more goods.