Suppose a company expects prices in general to rise by 5%, but the price of its product rises by 2%. How will the company respond to the price change?
A) It will increase production since it's getting a higher price for the product.
B) It will increase production more slowly since it's price is rising more slowly than average.
C) It will reduce production since it perceives a relative decline in the demand for its product.
D) It will stop production and shut down until prices rise more quickly.
C
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About 1 out of every _____ black Americans is poor.
A. 12 B. 7 C. 4 D. 2
Which of the following correctly lists the products in order from most advertised to least advertised?
a. soft drinks, breakfast cereals, dog food b. corn, dog food, communication satellites c. dog food, communication satellites, corn d. wheat, corn, crude oil
If labor productivity rises at the same time that there is a beneficial supply shock, what is the effect on short-run aggregate supply (SRAS)?
A) SRAS rises. B) SRAS falls. C) SRAS remains constant. D) SRAS may rise, fall, or remain constant.
Explicit functions of the Fed include all the following except:
A. conducting fiscal policy. B. conducting monetary policy. C. serving as a lender of last resort to financial institutions. D. providing banking services to the U.S. government.