A decrease in the price of an input will
A) increase demand for the product.
B) decrease demand for the product.
C) increase supply of the product.
D) decrease supply of the product.
C
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Economies that are primarily market-oriented have fewer regulations.
Select whether the statement is true or false. A. True B. False
During 1981-1985, the United States pursued a restrictive monetary policy that sharply lowered inflation. At the same time, large budget deficits helped push real interest rates to an all-time high. What would you expect to happen to the value of the dollar on the foreign exchange market?
If an increase in the price of good X leads to a decrease in the demand for good Y, then:
A. good X is a normal good and good Y is an inferior good. B. good X and good Y are normal goods. C. good X and good Y are substitutes. D. good X and good Y are complements.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.