Suppose corn farmers encounter a "bumper" corn crop, which results in a significant increase in the market supply curve for corn. Increases in supply will tend to
A) decrease the price of corn.
B) increase the demand for corn.
C) increase the price of corn.
D) decrease the demand for corn.
A
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Economic growth in Cuba has been slow; what can best explain the slow growth?
A) Lack of economic resources B) Lack of incentive mechanisms and economic freedom C) Labor productivity is low. D) A non-democratic form of government E) Too much competition within the economy
Which of the following statements is not an example of the use of persuasion to correct (or adjust for) an externality?
A. Maggie asks her neighbor to keep his dog quiet at night. B. An environmental group conducts a sit-in at a chemical factory to demand that the firm stop polluting rivers. C. A judicial court imposes a fine on a reckless driver. D. All of the above are examples of the use of persuasion to correct (or adjust for) an externality.
If the demand curve for a good is unit price elastic and the supply curve is perfectly price elastic, a $1 specific tax imposed on the sellers of this good will
A) shift the supply curve up vertically by $1. B) shift the demand curve down vertically by $1. C) not raise price at all. D) cause price to increase but by less than $1.
If currency depreciates:
a. net exports rise and the aggregate demand curve shifts inward b. net exports rise and the aggregate demand curve shifts outward c. net exports fall and the aggregate demand curve shifts inward d. net exports fall and the aggregate demand curve shifts outward