Good news for farming can be bad news for farmers because the
a. supply curve for an individual farmer is usually perfectly elastic.
b. supply curve for an individual farmer is usually perfectly inelastic.
c. demand for basic foodstuffs is usually inelastic, meaning that factors that shift supply to the right decrease total revenues to sellers.
d. demand for basic foodstuffs is usually elastic, meaning that factors that shift supply to the right increase total revenues to sellers.
c
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Which statement shows income as a factor affecting demand?
a. A factory in town gives its employees bonuses, and mall purchases increase. b. Many people move into a suburb because it has affordable housing. c. Advertising convinces people that jeans make them look overweight. d. Meteorologists predict a winter with lots of snow, so shovel sales rise.
The economy does have a self-correcting mechanism that tends to eliminate either unemployment or inflation and tends to act slowly and unevenly.
Answer the following statement true (T) or false (F)
The firm's most efficient output would be
A. 70 units.
B. 80 units.
C. 90 units.
D. 100 units.
Refer to the information provided in Figure 3.14 below to answer the question(s) that follow.
Figure 3.14Refer to Figure 3.14. If this market is unregulated and the price is currently $30, you would expect that the price of sunglasses would
A. rise to $90, so the firm could meet its excess demand. B. remain at $30, because firms would not want to increase the price. C. rise to $60, where quantity demanded equals quantity supplied. D. rise, but the new price is indeterminate from the information provided.