An increase in the price of corn will lead to
A) an upward (and leftward) movement along the demand curve for corn.
B) a leftward shift in the demand curve for corn.
C) a rightward shift in the supply curve for corn.
D) an increase in the quantity of corn consumed.
A
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If a perfectly competitive firm is a profit-maximizer, it produces where
a. MR>MC b. P>MR c. P = MC d. TR = TC
Lines, ration coupons, and black markets are byproducts of a
A. price floor. B. price ceiling. C. free market. D. barter economy.
At the utility maximizing choice, the marginal utility of a hamburger is 50 utils, while the marginal utility of French fries is 25 utils. If the price of French-fries $5, the price of a hamburger is _____
a. $10 b. $5 c. $4 d. $2.50
Figure 4-13
Refer to . The supply curve S and the demand curve D1 indicate initial conditions in the market for flu shots. A new government program is implemented that grants buyers a $25 subsidy when they buy a flu shot, shifting the demand curve from D1 to D2. Which of the following is true for this subsidy given the information provided in the exhibit?
a.
Buyers of flu shots will receive an actual benefit of $10 from the subsidy, while sellers of flu shots will receive an actual benefit of $15 from the subsidy.
b.
Buyers of flu shots will receive an actual benefit of $15 from the subsidy, while sellers of flu shots will receive an actual benefit of $10 from the subsidy.
c.
Buyers of flu shots will receive the full $25 benefit from the subsidy.
d.
Sellers of flu shots will receive the full $25 benefit from the subsidy.