Assume that the market for cage-free eggs is perfectly competitive. All else equal, as farmers find it less profitable to produce and sell cage-free eggs in this market
A) the demand curve will shift to the left and the equilibrium price will decrease.
B) the supply curve will shift to the left and the equilibrium price will increase.
C) the supply curve will shift to the right, the demand curve will shift to the left, and the equilibrium price will decrease.
D) the supply curve will shift to the left, the demand curve will shift to the left, and the equilibrium price will increase.
Answer: B
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Since 1930, U.S. government spending as a percent of GDP has
a. increased b. decreased c. stayed the same d. showed no particular trend e. increased by the same percent each year
In order to see how the labor market works as a whole, we need to add up all the:
A. supply curves of individual workers and the demand curves of individual firms to find market level supply and demand. B. observed equilibrium wages across all individual markets and take the weighted average. C. demand curves of individual workers and the supply curves of individual firms to find market level demand and supply. D. None of these statements is true.
A monopolist that does not price discriminate will set the output level where
a. P = MC b. P = MR c. TR = TC d. MR = MC e. P = ATC
If the government's provision of a subsidy is too small to counteract the entire effect of a positive externality, the:
A. total surplus will be maximized, but the outcome will be inefficient. B. quantity consumed will still be too high. C. quantity consumed will still be too low. D. total surplus will not be maximized, but the outcome will be efficient.