The supply function for good X is given by Qxs = 1,000 + PX - 5PY - 2PW, where PX is the price of X, PY is the price of good Y and PW is the price of input W. If the price of input W increases by $10, then the supply of good X
A. will increase by 20 units.
B. will increase by 10 units.
C. will decrease by 10 units.
D. none of the statements associated with this question are correct.
Answer: D
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What happens to the monetary base if the domestic currency is undervalued (the central bank fixed the exchange rate below equilibrium) and the central bank intervenes to fix the exchange rate at its current level?
a. The change in the monetary base is ambiguous. b. The monetary base is only affected by interventions of the central bank when the domestic currency is overvalued. c. The monetary base will rise. d. The monetary base is never affected by interventions of the central bank. e. The monetary base will fall.
A monopsony is characterized as a market which has:
A. many buyers and one seller. B. many buyers and many sellers. C. one buyer and one seller. D. one buyer and many sellers.
Which cost curve is continually falling as output increases?
a. the average total cost curve b. the total cost curve c. the average variable cost curve d. the average fixed cost curve
Growth in potential GDP in the United States from 1949 to 2017 was estimated to be about
A) 8.25% per year. B) 5.0% per year. C) 3.2% per year. D) 1.5% per year.