In the market for a normal good, what is the ultimate market reaction of suppliers to an increase in the incomes of consumers?
A) Suppliers do not react, because a change in income shifts the demand curve, not the supply curve.
B) The supply curve shifts to the right.
C) The supply curve shifts to the left.
D) Quantity supplied increases as the equilibrium moves along the supply curve due to a rise in the demand.
D
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What is the least accurate description of changes in the New World distribution of slaves over time?
a. The West Indies' share of slaves in 1825 was slightly larger than its share of the original transatlantic slave trade. b. The United States was a relatively minor importer of slaves, but grew to hold the largest number of slaves. c. Brazil was the largest importers of slaves from Africa and had one of the largest slave populations in 1825.
A rise in X-inefficiency:
A. does not affect costs, only the price and quantity. B. shifts the ATC curve up. C. shifts the ATC curve down. D. shifts the ATC curve down or up, depending on the nature of the inefficiency.
Suppose the demand for good X is given by Qdx = 10 + axPx + ayPy + aMM. If ay is positive, then:
A. goods y and x are complements. B. goods y and x are normal goods. C. goods y and x are substitutes. D. goods y and x are inferior goods.
An efficient market is a market in which
A. profit opportunities are eliminated almost instantaneously. B. everyone always gets what they want. C. opportunity costs are zero. D. profits are always very high and persistent.