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 prides provide producers with the incentives needed to increase the quantity supplied.
d
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The indifference curves in the figure above (I1, I2, and I3 ) reflect Peter's consumption preferences. Which of the following combinations of goods does Peter prefer the most?
A) 48 slices of pizza and 12 chocolate bars B) 24 slices of pizza and 24 chocolate bars C) 40 slices of pizza and 20 chocolate bars D) 32 slices of pizza and 8 chocolate bars
Which one of the following statements about water pricing in the United States is true?
a. As most water utilities are monopolies, they tend to make excessive profits b. Water prices are normally set according to the average cost of providing water c. Water prices are normally set according to the marginal water cost of providing water d. Water prices are normally set according to the interaction of supply and demand e. Water prices fluctuate significantly based on changes in seasonal demands
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Which statement about competition is true?
A. To have competition, no firm is large enough to have any influence over price. B. There is little competition between firms in the United States. C. The American automobile industry would be considered competitive if there were at least four firms in the industry. D. There is no competition in American industry.