In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and ________
A) the quantity supplied increases because the price falls
B) increases the demand for bananas
C) increases the quantity of bananas demanded
D) creates a shortage of bananas
C
You might also like to view...
Draw two graphs: one showing the relationship of average product, marginal product, and total product; the other showing the relationship of AFC, AVC, and ATC. Then relate the shape of the marginal product to that of the marginal cost.
What will be an ideal response?
Fixed prices in a free-market economy can increase efficiency.
Answer the following statement true (T) or false (F)
From the 1950s through the 1970s, the Fed
a. favored controlling the money supply over controlling the interest rate b. did not seem to favor either control over the money supply or the interest rate c. favored controlling the interest rate over controlling the money supply d. controlled whichever target that government did not control at the time e. based its control policy—the interest rate or the money supply—on the value of the dollar vis-à-vis other currencies
Which is the most accurate statement?
A. The Japanese and Chinese bear most of the blame for our huge trade deficit. B. Our trade deficit with China has been rising more rapidly than our trade deficit with Japan. C. Our combined trade deficits with Japan and China now total about $100 billion. D. Most economists agree that the best way to reduce our trade deficit would be to impose high tariffs on our imports from Japan and China.