Explain the law of supply. What does the law of supply imply about the shape of the supply curve?
What will be an ideal response?
The law of supply describes the positive relationship between price and quantity supplied. All else equal, as the price of a good rises, the quantity supplied of the good rises as well. As the price of a good falls, the quantity supplied falls. This implies that the supply curve will be upward sloping.
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The slope of an indifference curve at all points reflects
a. the terms by which the consumer can trade off goods in the market. b. the relative prices of the two goods. c. the willingness of the consumer to trade one good for another. d. consumer income relative to the price of a good. e. the relative price ratio of the two goods.
If the dollar appreciates, it can be said that
a. foreigners respect the United States more. b. it increases in value within the United States. c. other currencies depreciate. d. it takes more dollars to buy foreign currencies.
In the U.S. a television costs $400 . In South Africa the same television costs 3000 rand (the currency of South Africa). The nominal exchange rate is 8 rand per dollar. A. Find the real exchange rate. Show your work. B. In terms of dollars where is the television cheapest?
Profits in the short run attract resources to industries in the long run, allowing them to expand.
Answer the following statement true (T) or false (F)