Explain how the following will affect the supply curve of coffee
a) A fall in the wages paid to coffee workers
b) An increase in the availability of high-yielding coffee plants
c) A decrease in the quantity of land under coffee cultivation
a) A fall in wages paid to workers will shift the supply curve of coffee to the right. This implies an increase in the supply of coffee.
b) An increase in the availability of high-yielding coffee plants will shift the supply curve of coffee to the right. This implies an increase in the supply of coffee.
c) A decrease in the quantity of land under coffee cultivation will shift the supply curve of coffee to the left. This implies a decrease in the supply of coffee.
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A monopolistically competitive firm shuts down in the short run if ________
A) marginal revenue equals marginal cost B) total revenues do not cover variable costs C) marginal revenue covers average fixed costs D) average total cost exceeds price
Marginal cost is calculated as
A) total cost divided by output. B) the increase in total cost divided by the increase in output. C) the increase in total cost divided by the increase in labor, given the amount of capital. D) total cost minus total fixed cost.
Suppose the U.S. public holds $1 trillion in government bonds, all with an 8 percent nominal interest rate
If the Federal Reserve can hold that nominal rate constant, what inflation rate would make the government's net interest expense exactly zero? A) 16 percent B) 8 percent C) 0 percent D) -8 percent
Ceteris paribus, if the market supply of a product increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. increase; decrease b. decrease; increase c. increase; increase d. decrease; indeterminate