University studies have shown that that chickens grow 2 percent larger when a red mitten is placed in their cage and Vivaldi is played in the coop. This leads to a reduction in feed costs of $60 million a year. In the chicken market, the
A. demand curve shifts to the right.
B. supply curve shifts to the right.
C. price will rise.
D. quantity sold will fall.
Answer: B
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An increase in the tax rate on dividends, other things equal, is likely to result in a(n):
A) increased demand for bonds due to an increase in the expected return on bonds relative to stocks B) increased supply of bonds due to an increase in the expected return on bonds relative to stocks C) reduced demand for bonds due to a decrease in the expected return on bonds relative to stocks D) reduced demand for bonds due to an increase in the expected return on bonds relative to stocks
If a firm hires 312 workers it produces 4,522 computers. If it hires 313 workers it produces 4,786 computers. If computers sell at a constant price of $1 and labor is hired at a constant wage rate of $65 per worker
A) the firm should hire and retain the additional worker. B) the marginal factor cost of labor is $65. C) the marginal revenue product of the added worker is $264. D) all of the above.
Bill sells Mary a worthless coin that Bill deviously told Mary "belonged to an ancient Persian king and is of enormous value to coin collectors." Economists would call this an
A. efficient exchange, as any type of voluntary exchange promotes efficiency. B. inefficient exchange because there were externalities involved. C. inefficient exchange, as at least one party used false market information. D. efficient exchange, assuming Bill was not intentionally trying to trick Mary.
A nation's average annual real GDP growth rate is 2.5%. Based on the rule of 70 the approximate number of years that it would take for this nation's real GDP to double is:
A. 175 years B. 40 years C. 28 years D. 17.5 years