Use the graph below to answer the next question.
Other things equal, an increase in the price of substitute resource would cause a
A. move from a to b on D1.
B. shift from D2 to D3 assuming the substitution effect exceeds the output effect.
C. move from b to a on D1.
D. shift from D3 to D2 assuming the substitution effect exceeds the output effect.
Answer: B
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If your income stays the same and the price level increases, you will buy fewer goods and services due to the
A) interest rate effect. B) real-balance effect. C) open economy effect. D) aggregate balances effect.
According to economist Robert Gordon, major innovations in the United States have been concentrated in ________ waves of growth
A) two B) three C) four D) five
Production under increasing opportunity costs can result from the two industries using factors of production in different combinations
Indicate whether the statement is true or false
According to the interest parity condition, if the domestic interest rate is 10 percent and the foreign interest rate is 12 percent, then the expected ________ of the foreign currency must be ________ percent
A) appreciation; 4 B) appreciation; 2 C) depreciation; 2 D) depreciation; 4