If, due to rising demand, the price of cotton rose 15 percent while the prices of other goods and services rose an average of 10 percent,
a. the relative price of cotton has risen and one would expect the output of cotton to rise as a result.
b. the relative price of cotton has risen and one would expect the output of cotton to fall as a result.
c. the relative price of cotton has fallen and one would expect the output of cotton to rise as a result.
d. the relative price of cotton has fallen and one would expect the output of cotton to fall as a result.
a
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When the money supply rises by 10%, in the short run, output ________ and the price level ________
A) rises; is unchanged B) declines; falls C) is unchanged; falls D) declines; is unchanged
The supply curve of a price-taker firm in the short run is the:
a. firm's average variable cost curve. b. portion of the firm's average total cost curve that lies above average variable cost curve. c. portion of the firm's marginal cost curve that lies above average variable cost curve. d. firm's marginal revenue curve.
The theory of efficiency wages asserts that
a. employers set wages based on each employee's productivity. b. employers strive to hold wages below equilibrium levels. c. employers may find it profitable to pay above-equilibrium wages. d. efficient workers actually earn lower wages than those earned by inefficient workers.
If the price of good X is $10 and the price of good Y is $5, how much of good X will the consumer purchase if her income is $15?
A. 3 B. 0 C. 2 D. Cannot tell based on the above information.