The increase in the price of a good that is used as an input for a second good would (for the second good)
A. cause a movement along the supply curve to a (higher price, higher quantity) point.
B. move its supply curve to the right.
C. move its supply curve to the left.
D. cause a movement along the supply curve to a (lower price, lower quantity) point.
Answer: C
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A good with a perfectly inelastic supply has a price elasticity of supply:
A) equal to zero. B) between zero and one. C) equal to one. D) greater than one.
Refer to Figure 5-2. On the above graph, identify the market equilibrium price and quantity, the efficient equilibrium price and quantity, and the value of the deadweight loss resulting from too few people receiving vaccinations
What will be an ideal response?
Consider the following T-account for National City Bank:
Assets Liabilities Reserves $10,000 Deposits $100,000 Loans $90,000 If the required reserve ratio is lowered to 8 percent, how much can National City loan out? A) $10,000 B) $8,000 C) $2,000 D) $0
Which of the following would most likely increase the demand for peanut butter?
a. a decrease in the price of jelly, a good that is often used with peanut butter b. the discovery that excessive consumption of peanut butter is harmful to one's health c. crop failures that raise the price of peanuts d. the invention of a new product that consumers think is a good substitute for peanut butter