Suppose chickens and beef cattle are produced by different companies on different sites
If bad weather causes an increase in the price of hay, a food eaten by beef cattle but not by chickens, the equilibrium price of beef will ________, and the equilibrium price of chicken will ________.
A) stay the same; increase
B) increase; decrease
C) decrease; increase
D) increase; increase
E) decrease; decrease
D
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Given the information in Scenario 4.3, what is the point price elasticity of demand?
A) -1/3 B) -1/6 C) -1/10 D) -1/24 E) -5/24
Why is it that projects that have negative net present values are sometimes undertaken?
What will be an ideal response?
Price discrimination
a. forces monopolies to charge a lower price as a result of government regulation. b. is an attempt by a monopoly to prevent some customers from purchasing its product by charging a high price. c. is an attempt by a monopoly to increases its profit by selling the same good to different customers at different prices. d. increases the consumer surplus associated with a monopolistic market.
Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and decrease the money supply when the price level rises. If the economy starts from long-run equilibrium and aggregate demand shifts right, the central bank must
a. increase the money supply so interest rates rise. b. increase the money supply so interest rates fall. c. decrease the money supply so interest rates rise. d. decrease the moneys supply so interest rates fall