Explain how an increase in the price of leather brought about by shift in tastes may lead to an increase in the supply of beef
What will be an ideal response?
An increase in the price of leather will lead to an increase in the quantity of leather supplied. Thus, as ranchers raise more cattle (to increase the quantity of leather supplied), they will also have more beef to supply to the market.
You might also like to view...
When a price ceiling is set below the equilibrium price,
a. the quantity demanded will exceed quantity supplied. b. the quantity supplied will exceed the quantity demanded. c. the quantity supplied will equal the quantity demanded. d. the equilibrium price will fall.
The objective of Operation Twist was to:
A. stimulate aggregate demand by lowering long-term interest rates. B. stimulate aggregate demand by lowering short-term interest rates. C. reduce inflationary pressure by raising long-term interest rates. D. reduce inflationary pressure by raising short-term interest rates.
Normative analysis is concerned with "what ought to be," while positive analysis is concerned with "what is."
Indicate whether the statement is true or false
Suppose that a price discriminating monopolist is able to divide its market into two groups. If the firm sells its product for $50 to the group whose customers have the most elastic demand, what price are they likely to charge to the group whose customers have the least elastic demand?
A. $50 B. more than $50 C. less than $50 D. The answer depends on the marginal revenue for that group.