Suppose that the price of doughnuts decreases. Given that doughnut holes are a by-product of producing doughnuts, one would expect:
A. the supply of doughnuts to decrease.
B. the supply of doughnuts to increase.
C. the supply of doughnut holes to increase.
D. the supply of doughnut holes to decrease.
Answer: D
You might also like to view...
Charging prices closer to what consumers are willing to pay for a good
a. Reduces consumers surplus b. Increases producer surplus c. Both a and b d. None of the above
Suppose that velocity and output are constant and that the quantity theory and the Fisher effect both hold. What happens to inflation, real interest rates, and nominal interest rates when the money supply growth rate increases from 5 percent to 10 percent?
The ________ is the product of the marginal product of labor and the price of the output.
A. marginal revenue product B. average revenue C. total revenue D. marginal factor cost
Real business cycle theories rely on changes in ____________ to as causes of short run fluctuations
A) aggregate spending by consumers B) components of the production function C) consumer views about the course of the economy D) fluctuations in the quantity of money