Decreases in product prices cause the consumer's:
A. budget line to shift outward from the origin.
B. production possibilities curves to shift inward to the origin.
C. budget line to shift inward to the origin.
D. production possibilities curves to shift outward from the origin.
Answer: A
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What will be an ideal response?
What do supply and demand curves have in common?
a. They both usually slope upward. b. They both show a relationship between quantity and price. c. They both usually slope downward. d. They can both shift in response to changes in income or wealth. e. Neither of them is influenced by the size of the population.
Refer to the diagram. The profit-maximizing output:
A. is n.
B. is k.
C. is h.
D. cannot be determined from the information given.
If banks receive a greater amount of reserves and do not hold all of these reserves as excess reserves, the money supply expands
Indicate whether the statement is true or false