A key assumption made when a supply schedule is constructed is that
A. the only factors that matter in determining supply are price and quantity.
B. firms only want to sell a certain amount of a product.
C. supply is too important to be left to the marketplace.
D. only price and quantity vary, all other determinants of supply are held constant.
E. demand has a positive slope.
Answer: D
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A consumption possibilities curve shows the combinations of two goods that can be consumed when a nation specializes in producing a particular good and trades with another nation
Indicate whether the statement is true or false
A company that rewards its salespeople based on the number of sales made can expect
a. Higher sales prices b. Lower sales prices c. No sales d. All of the above
Luke won tickets to see a rock music concert. Even though Luke is a rhythm and blues fan, he goes to the concert anyway. Twenty minutes later, Luke decides he hates the music and the screaming fans, and he walks out an hour before the concert is scheduled to end. Luke's behavior demonstrates what economic concept?
A. Irrational behavior B. Rational behavior C. The fungibility of money D. None of these explain Luke's behavior.
Suppose Alice is deciding whether or not to go to a New York Giants game. Alice's enjoyment and thus decision, depends upon two uncertain events that are out of her control: whether the Giants win and whether it snows. She will be happiest if the Giants win and it does not snow. The newspaper reports a 35% chance for snow and the Giants record suggests a 40% chance of winning. The probability that the Giants lose and it snows is:
A. 21%. B. 26%. C. 95%. D. 25%.