Strawberries, a normal good, are produced in a perfectly competitive market. Average consumer incomes increase. This will cause the individual strawberry farmer?s marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: A
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During the twentieth century, a primary driver of the expansion of the U.S. income tax system has been _____
a. westward expansion b. natural disasters c. military conflict d. withholding
When the Fed chooses to target the interest rate target, it loses control over targeting the economy's money supply
Indicate whether the statement is true or false
In the U.S., studies have shown that as real incomes have risen, per capita demand for food has been increasing by a much lower percentage
Indicate whether the statement is true or false
At the current price there is a shortage of a product. We would expect price to:
A. increase, quantity demanded to increase, and quantity supplied to decrease. B. decrease, quantity demanded to increase, and quantity supplied to decrease. C. increase, quantity demanded to decrease, and quantity supplied to increase. D. increase, quantity demanded to increase, and quantity supplied to increase.