When economists say the supply of a product has decreased, they mean that:
A. the supply curve has shifted to the left.
B. the product price has decreased, and as a consequence, suppliers are producing less of the product.
C. producers are now willing to sell more of this product at each possible price.
D. the supply curve has shifted to the right.
Answer: A
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Japan's trade policies with regard to rice reflect the fact that
A) japanese rice farmers have significant political power. B) Japan has a comparative advantage in rice production and therefore exports most of its rice crop. C) there would be no gains from trade available to Japan if it engaged in free trade in rice. D) there are gains from trade that Japan captures by engaging in free trade in rice. E) Japan imports most of the rice consumed in the country.
If the U.S. government decides to increase military spending, one opportunity cost will be lower spending on education
a. True b. False Indicate whether the statement is true or false
Which of the following will both make people buy less?
a) wealth falls and interest rates fall b) wealth and interest rates rise c) wealth falls and interest rates rise d) wealth rises and interest rates fall
All other things unchanged, a tax on a product that leads to an increase in the cost of production would:
A) lead to an increase in supply. B) lead to a decrease in demand. C) result in an increased price. D) lead to a decrease in supply.