A "puppy boom" and an increase in the price of horse meat would cause the market price of dog food to
A. rise and the market output to rise, fall, or remain unchanged depending on the magnitude of the changes.
B. fall and the market output to rise, fall, or remain unchanged depending on the magnitude of the changes.
C. rise, fall, or remain unchanged depending on the magnitude of the changes, and the market output to rise.
D. rise and the market output to rise .
Answer: A
You might also like to view...
A good that has social costs that exceed private costs has a quantity that is
A) too high. B) too low. C) just right. D) the best society can do.
A decrease in government purchases or an increase in taxes, other things being equal, will tend to:
a. increase interest rates and decrease investment as a result. b. increase interest rates and increase investment as a result. c. decrease interest rates and decrease investment as a result. d. decrease interest rates and increase investment as a result.
If the price of grapes increases, total expenditures on grapes will decline if
a. there are few substitutes for grapes. b. the supply of grapes is inelastic. c. the demand for grapes is elastic. d. grapes are a normal good.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward