According to this Application, in recent years the European Union has reformed its agriculture policies by reducing or eliminating minimum prices. Ceteris paribus, these policy reforms would ________ excess supply by ________ prices
A) increase; lowering B) increase; raising C) reduce; lowering D) reduce; raising
C
You might also like to view...
The above figure shows a firm in monopolistic competition. What is the profit maximizing level of output the firm will produce?
A) 4 units per day B) 8 units per day C) 10 units per day D) 16 units per day
A firm replaces a machine by hiring 3 hourly production workers instead. a. Both its fixed and variable costs will fall
b. Both its fixed and variable costs will rise. c. Its fixed costs will rise and its variable costs will fall. d. Its fixed costs will fall and its variable costs will rise.
A merger between two firms occurs when
a. two firms agree to work temporarily on a single project, which is why we constantly read about mergers occurring and splitting up b. one firm splits into two or more firms, such as General Motors splitting into divisions of Buick, Pontiac, and so on c. each of the two firms agrees not to sell in each other's markets d. the two firms become one firm, as in the newspaper industry when the Chicago Sun and the Chicago Times became the Chicago Sun-Times e. one firm quits the industry and another takes over its market share
The diamond-water paradox illustrates the idea that ________ determines what consumers are willing to pay for a particular good.
A. the substitution effect B. marginal utility C. the real-income effect D. total utility