A reduction in production costs will not result in which of the following?
A. rightward shift of the supply curve.
B. increase in supply.
C. greater willingness and ability of producers to supply a larger quantity at any given price.
D. greater willingness and ability of consumers to demand a larger quantity at any given price.
Answer: D
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Which of the following is more likely to be able to command a higher price for its products
a. A specialty frozen yogurt producer, with high quality product b. A mall kiosk selling costume jewelry c. A specialty toy store that allows customers to self-design teddy bears d. Both A&C
Keynes believed that: a. discretionary fiscal policy was needed to stabilize the economy
b. wages are not flexible particularly in a downward direction. c. the economy could remain in a period of unemployment for a long time period. d. all of the above.
The marginal propensity to consume is always
a. a negative number b. larger than 1.0 c. larger than 10 d. greater than zero and less than 0.5 e. greater than zero and less than 1.0
A key assumption about the way firms behave is that they
A. maximize revenue. B. minimize costs. C. maximize profit. D. maximize market share.