The price of coffee increases. Which of the following is NOT part of the likely chain of events that follows from this price change?
A) Some coffee consumers reduce their consumption of coffee.
B) Coffee producers increase their production of coffee.
C) The producers of coffee beans increase production.
D) The manufacturers of coffee machines lay off some workers.
Answer: D
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A musician was guaranteed by the government that no one else could replicate or sell his music CDs. This is an example of a:
A) brand. B) patent. C) copyright. D) trademark.
The prices that are in the public's best interest will
a. always allow the regulated firm to break even. b. always allow the regulated firm to make positive economic profits. c. sometimes leave the regulated firm with economic losses. d. leave the regulated firm with profits that are about 10 percent higher than those of other firms.
Other things constant, if the demand for a final product is quite elastic, the demand for a resource used to produce the product will tend to be
a. highly inelastic. b. of unitary elasticity. c. a curve sloping upward to the right. d. quite elastic as well.
In 2003, tax rates on dividends and capital gains were ________, making investment ________.
A. increased; more profitable B. increased; less profitable C. reduced; less profitable D. reduced; more profitable