As price falls along a supply curve, ________ increase(s) while ________ decrease(s).
A. nothing; quantity supplied, producer surplus, and revenues
B. producer surplus and price; quantity supplied and revenues
C. quantity supplied and price; producer surplus and revenues
D. revenues, quantity supplied, and price; producer surplus
Answer: A
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What is meant by increasing returns to scale?
What will be an ideal response?
Along an IS curve as interest rates __________, income must be __________ so that saving, which is a positive function of income, can be lower to equal the smaller level of investment
A) decline; lower B) decline; higher C) increase; lower D) increase; higher
The adverse selection problem is least likely in which of the following occupations?
a. lawyer b. barber c. college professor d. marketing analyst e. manager
Most macroeconomists believe that both fiscal and monetary policy can shift aggregate demand and that such interventions can be counterproductive
a. True b. False Indicate whether the statement is true or false