Suppose a drought resulted in a major reduction in the California lettuce crop. In the market for lettuce,
A) the demand curve shifted to the right resulting in an increase in the equilibrium price.
B) the supply curve shifted to the left resulting in a decrease in the equilibrium price.
C) the supply curve shifted to the left resulting in an increase in the equilibrium price.
D) the demand curve shifted to the left resulting in a decrease in the equilibrium price.
C
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Refer to the above figure for the market of Cheerios. Which diagram depicts the effect of an increase in the price of Cheerios?
A) A B) B C) neither graph D) both graphs
List the three alternative explanations for the upward slope of the short run aggregate supply curve
An example of a renewable resource would be:
A. oxygen. B. trees. C. fish in the ocean. D. All of these are examples of renewable resources.
When the price levels fall, the quantity of real GDP demanded will __________.
Fill in the blank(s) with the appropriate word(s).