A shift in the demand curve will occur when
A) supply shifts.
B) the price of an input used to produce the good changes.
C) consumers' income changes.
D) the price of the product changes.
C
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One of the arguments supporting new classical theory is the policy ineffectiveness proposition (PIP)
Indicate whether the statement is true or false
If the MPC is 0.60 and disposable income increases from $20,000 billion to $22,000 billion, consumption will increase by
A. $1,200 billion. B. $600 billion. C. $2,000 billion. D. $800 billion.
The main difference between a monopsonist and a competitive buyer of labor is that
A) the monopsonist can hire as many workers as it wants at the going wage while the competitive firm must raise wages to hire additional workers. B) the competitive firm can hire as many workers as it wants at the going wage while the monopsonist can hire more workers at lower wages. C) the competitor can hire as many workers as it wants at the going wage while the monopsonist must raise wages to hire additional workers. D) the monopsonist can force wages down and still hire as many workers as it wants while the competitive firm must increase the wage rate to hire additional workers.
Refer to the information provided in Table 8.4 below to answer the question(s) that follow. Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4 4?B2 6????2 units of outputA 7 6?B410????3 units of outputA 8 6?B 6 11Refer to Table 8.4. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the lowest long-run total cost of producing one unit of output is
A. $8. B. $50. C. $60. D. $110.