Figure 3-11
In , suppose D1 and S1 indicate initial conditions in the market for kitchen cabinets. Which of the following would tend to cause the supply curve to shift from S1 to S2?
a.
the invention of "folding" plates and cups that take up substantially less storage space in the kitchen
b.
a decrease in consumer income
c.
a decrease in the price of wood, a resource used to produce kitchen cabinets
d.
an increase in the price of steel hinges, a resource used to produce kitchen cabinets
c
You might also like to view...
If the reserve ratio is designated by "r," how much of a deposit can banks lend out?
A) (1 - r) B) r / (1 - r) C) 1 / r D) 1 / (1 - r)
If a good is quasilinear, its own-price demand curve is vertical.
Answer the following statement true (T) or false (F)
The price elasticity of demand for Stork ice cream is -4. Suppose you're told that following a price increase, quantity demanded fell by 10 percent. What was the percentage change in price that brought about this change in quantity demanded?
A) 40 percent B) 25 percent C) 2.5 percent D) 0.4 percent
If a firm has excess capacity, it means
A) that the firm's long-run average cost of producing a given quantity exceeds its short-run cost of producing that same quantity. B) that the firm's quantity supplied exceeds its quantity demanded. C) that the firm expends too much of its resources on advertising its product without seeing an appreciable increase in sales. D) that the firm is not producing its minimum efficient scale of output.