Which of the following statements is consistent with a decrease in supply?
A) Prices of raw material inputs have increased.
B) There has been an advance in technology.
C) Consumers' incomes have increased.
D) The market price has decreased.
A
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Does an increase in the demand for Introductory Economics increase the cost to students of taking the course?
A) No, because tuition rates are not set to clear the market. B) Not if the college refuses to hire additional people to teach the course. C) Yes, if the course is consequently taught in a larger room, which costs more to heat. D) Yes, insofar as students have to accept less satisfactory class schedules in order to take the course.
A monopolist is a price maker.
Answer the following statement true (T) or false (F)
Wayne Inc supplies a wide range of electronic products. However, the quality of the company's products is low compared to other companies. The CEO of the company decides to improve quality by reducing the variety of products. The decision of the CEO is based on the concept of _____
a. privatization b. globalization c. economies of scale d. specialization
If consumers often purchase muffins to eat while they drink their lattés at local coffee shops, what would happen to the equilibrium price and quantity of lattés if the price of muffins rises?
a. Both the equilibrium price and quantity would increase. b. Both the equilibrium price and quantity would decrease. c. The equilibrium price would increase, and the equilibrium quantity would decrease. d. The equilibrium price would decrease, and the equilibrium quantity would increase.