In the market for cell phones, which of the following events increases the supply of cell phones?
A. New technology lowers the cost of making a cell phone
B. Rise in the price of an e-book reader (a substitute in production)
C. An increase in people's incomes
D. A rise in the wage rate paid to electronics workers
A Answers B and D decrease the supply of cell phones; answer C affects the demand for cell phones.
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If the price of a product increases
A. total revenue will definitely decrease. B. total revenue will definitely increase. C. consumer surplus will decrease. D. consumer surplus will increase.
This chapter discussed natural and randomized experiments. How does a natural experiment differ from a randomized one? Which one is likely to yield more accurate results?
What will be an ideal response?
Stagflation occurs when
A) inflation rises and GDP falls. B) inflation falls and GDP falls. C) inflation rises and GDP rises. D) inflation falls and GDP rises.
Bilateral monopoly exists when
A) a single buyer confronts a single seller. B) there are two monopolistic buyers trying to buy resources. C) two labor unions are trying to represent the same group of workers. D) a firm is both a monopoly in its output market and a monopsonist in its input market.