A recent epidemic of mad cow disease caused the government to mandate that thousands of cows be completely destroyed. This will likely cause:
A. the demand for leather shoes to increase.
B. the supply of leather shoes to decrease.
C. the demand and the supply of leather shoes to increase.
D. It will not affect the market for leather shoes.
B. the supply of leather shoes to decrease.
You might also like to view...
Most Mexican workers can increase their wages if they migrate to the United States, a demand-pull factor for migration
Indicate whether the statement is true or false
Country A is labor abundant relative to country B if it has a larger labor force than B's
Indicate whether the statement is true or false
If the production of 2,000 cars and 500 tons of corn during a year is economically efficient for a country which produces only these two products, which of the following conclusions can be drawn?
a. It satisfies domestic demand completely. b. The production of cars can not be increased without reducing the production of corn. c. The reallocation of resources to change the production level must reduce production of both goods. d. It is possible to increase the production of both if resources can be reallocated.
A decrease in the price level will
a. increase the quantity of aggregate demand, shown as a downward movement along the existing aggregate demand curve b. decrease the quantity of aggregate demand, shown as an upward movement along the existing aggregate demand curve c. cause a rightward shift in the aggregate demand curve d. cause a leftward shift in the aggregate demand curve e. have no effect on the aggregate demand curve