An increase in price will result in a decrease in the quantity supplied.

a. true
b. false


Ans: b. false

Economics

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Potential GDP is reached when

A) unemployment is zero. B) there is no cyclical unemployment. C) unemployment is above full employment. D) unemployment is below full employment. E) the natural unemployment rate equals zero.

Economics

Suppose you run a pizza shop and currently have two employees. If you hire a third employee, your output of pizzas per day rises from 55 to 65. If you hire a fourth employee, output rises to 80 per day. A fifth and sixth employee would cause output to rise to 90 and 95 per day, respectively. Pick the correct statement:

A. Diminishing returns set have not yet set in because output is still increases. B. Diminishing returns set in with the hiring of the sixth worker. C. Diminishing returns set in with the hiring of the fourth worker. D. Diminishing returns set in with the hiring of the fifth worker.

Economics

An inflationary gap may be eliminated using contractionary fiscal policy.

a. true b. false

Economics

A decrease in government purchases of goods and services is an example of...

What will be an ideal response?

Economics