If the prices of the factors used to produce a good change, both the demand curve and the supply curve of the good will shift.
Answer the following statement true (T) or false (F)
False
A change in the costs of production will impact the supply curve only.
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Economists use the term "ceteris paribus" to indicate that: a. the analysis is true for the individual but not for the economy as a whole
b. supply and demand are in balance. c. their conclusions are based on normative rather than positive economic analysis. d. other things are assumed to remain constant.
As the Consumer Price Index increases, the value of money
a. falls, so people hold more money to buy the goods and services they want. b. falls, so people hold less money to buy the goods and services they want. c. rises, so people hold more money to buy the goods and services they want. d. rises, so people hold less money to buy the goods and services they want.
What is required for a positive externality to occur?
A) The full benefits of an action aren't taken into account. B) The intention or plan to directly help other people C) A concern for social welfare D) Courtesy and honesty E) All the above.
What is the difference between defensive and dynamic open market operations?
What will be an ideal response?