An outward shift in the consumer demand for wheat will
A) raise the price of wheat and shift inward the marginal revenue product of labor producing wheat.
B) lead to more capital and less labor used in producing wheat.
C) raise the price of wheat and shift out the marginal revenue product of labor producing wheat.
D) lead to downward pressure on the wages of those producing wheat.
C
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The slope of the production possibility frontier shows
a. how inputs must be changed to keep them fully employed. b. the technically efficient combinations of the two goods. c. how demanders are willing to trade one good for another. d. the opportunity cost of one good in terms of the other.
Which of the following statements best describes trade-offs?
a. With a trade-off, it is necessary to give up some of one good to gain more of the other good. b. Trade-offs are not determined by the relative prices of the goods. c. A trade-off is always represented by a straight vertical line. d. A trade-off is always represented by a straight horizontal line.
Micromania imports a good costing it $12,000 and exports a different good for a price of $9,000 . Ten years ago it paid $6,000 for the good and received $3,000 for the good it exported. How has the terms of trade index changed from then to now?
a. From 25 to 75 b. From 66 to 300 c. From 75 to 25 d. From 300 to 66 e. None of the above
Would a profit-maximizing firm sell at a price where demand is inelastic? Explain