When economists say that the supply for a product has decreased, they mean that the
A. product has become more expensive and thus consumers are buying less of it.
B. supply curve has shifted to the left.
C. product has become particularly abundant for some reason.
D. supply curve has shifted to the right.
Answer: B
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What characterized the 1950–1962 economy (from the Korean War to the last year of John F. Kennedy's presidency)?
(a) Significant inflation (b) Deflation (c) High unemployment (d) Falling prices and wages
In economics, physical capital includes
A) money. B) bank deposits. C) machinery. D) shares of company stock.
A firm with fixed costs produces at the lowest point on its U-shaped average variable cost curve. If it raises output by 1 unit, then average:
A. Fixed cost will increase B. Total cost will decrease C. Fixed cost will necessarily be below average variable cost D. Total cost will be less than average variable cost
If central bankers raise the interest rate, the asset-price channel of monetary policy implies:
A. stock prices will remain the same but bond prices will increase. B. bond prices will remain flat. C. stock prices will increase and bond prices will remain flat. D. stock prices will decrease.