All shredded wheat producers have decided to add a new ingredient to shredded wheat, the "crunch enhancer." Crunch enhancer keeps cereals crisper longer in milk and, as a result, consumers decide they like shredded wheat more than before
What happens to the supply and demand curves for shredded wheat now that is costs more to produce and consumers like it better? A) The supply and demand curves both shift rightward.
B) The supply curve shifts rightward and the demand curve doesn't shift.
C) The supply curve shifts leftward and the demand curve shifts rightward.
D) The supply curve shifts leftward and the demand curve doesn't shift.
C
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If instead the government set the abatement standard at 50 million tons per year, would that standard be too lenient or too restrictive at the national level? Support your answer with specific values.
Hypothetically, suppose a recent study of hazardous waste abatement (A) arrives at the following national estimates for abating chemical solvents: MSB = 100 – 0.75A and MSC = 20 + 0.50A, where A is measured in millions of tons per year, and costs are measured in millions of dollars.
One effect of a minimum wage in the market for low-skilled labor is
A) a shortage of low-skilled labor. B) a surplus of low-skilled labor. C) no effect in the market for low-skilled labor. D) an increase in demand for low-skilled labor.
A typical indifference curve is upward sloping
a. True b. False Indicate whether the statement is true or false
When solving collective action problems, a major barrier is the free rider problem, which occurs when actors
a. reap the benefits without contributing any effort. b. harvest the resources of other nations. c. increase their consumption in a sudden and dramatic way. d. are forced to live with control and domination.