Supply curves slope upward because:
A. the quality is assumed to vary with price.
B. technology improves over time, increasing the ability of firms to produce more at each possible price.
C. increases in the price of a good lead to rightward shifts of the supply curve.
D. rising prices provide producers with the incentives needed to increase the quantity supplied.
Answer: D
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Ceteris paribus, an increase in consumers' income will result in: a. a decrease in demand for an inferior good
b. an increase in demand for an inferior good. c. a decrease in the quantity supplied of an inferior good. d. an increase in the quantity supplied of an inferior good.
Under a fixed exchange rate system, if the inflation rate in the United States is 5 percent a year and the inflation rate in Australia is 0 percent a year, then the U.S. real exchange rate will:
A. remain constant. B. increase 5 percent a year. C. decrease 5 percent a year. D. possibly increase or decrease.
Vertical integration can reduce transaction costs through all of the following ways except which one?
A) decreasing the incentive for litigation B) creating managerial diseconomies C) establishing a partnership between the two firms D) increasing information and control
More enjoyable professions tend to enjoy compensating wage differentials
a. True b. False