The emigration of some of Whoville’s workers reduces the quantity of thingamabobs supplied at every price by 50. The new supply curve will ____ the old supply curve.
A. be steeper and less elastic at every price than
B. have the same slope and the same elasticity at every price as
C. have the same slope and be more elastic at every price than
D. More information is needed to predict the relationship between the elasticities of the two supply curves.
Answer: C
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Depository institution create liquidity when they
A) buy assets that are liquid. B) borrow short and lend long. C) have liabilities that are illiquid. D) borrow long and lend short.
The New York Federal Reserve Bank
A. president always gets to vote at the FOMC meetings. B. conducts open market transactions. C. is one of 12 regional Federal Reserve Banks. D. All of the above are correct.
Refer to the graphs shown, which depict a perfectly competitive market and firm. If market demand decreases from D0 to D1:
A. market price remains at P0 because perfectly competitive firms can't earn positive economic profit. B. the firm's output remains at q1 because perfectly competitive firms can't earn positive economic profit. C. market price falls from P0 to P1 and the firm's output rises from q0 to q1. D. market price falls from P0 to P1 and the firm's output falls from q1 to q0.
If utility is not maximized, then:
A. some change in consumption will increase satisfaction. B. no change in consumption will increase utility. C. only a change in income will increase utility. D. only a change in price will increase utility.