A rise in price almost always:
a. leads to an increase in the quantity supplied of that good or service.
b. leads to a decrease in the quantity supplied of that good or service.
c. has no effect on the quantity supplied of that good or service.
d. leads to an increase in the quantity demanded of that good or service.
a. leads to an increase in the quantity supplied of that good or service.
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Use the aggregate expenditures model and the following values to answer the next question.AMPCIGT$7500.5$1,000$1,000$500Determine the new equilibrium real GDP following a decrease in taxes from 500 to 400 (?T = -$100).
A. $4,500 B. $4,000 C. $5,100 D. $4,900
If the economy is producing at point a on its production possibility frontier, then
A) all of the country's workers are employed. B) all of the country's workers are specialized in one product. C) all of the country's capital is used for one product. D) all of its capital is used, but not efficiently. E) all of the country's exports are produced in equal amounts.
Suppose that recent studies conclude that high-fiber diets do not reduce the risk of developing colon cancer as was previously thought. The likely result will be that the:
A. demand for high-fiber foods will decrease. B. quantity demanded of high-fiber foods will fall. C. price of high-fiber foods will rise. D. supply of high-fiber foods will increase.
If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. Suppose that Ana and Leo decide to work together as a team. Can they produce 2 pounds of fudge and 4.5 pounds of toffee each hour?
A. No, this point is not attainable. B. Yes, this point is both attainable and efficient. C. Yes, this point is attainable, but inefficient. D. No, this point is not attainable and inefficient.