The law of supply states that
a. as prices increase, quantity supplied decreases.
b. price changes are always in the same direction as supply changes.
c. a change in price causes a change in supply.
d. price and quantity supplied are positively or directly related.
d. price and quantity supplied are positively or directly related.
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The most plausible way to produce a continuous increase in the standard of living within the Solow growth model is to assume
A) continuous technological improvement. B) a positive rate of population growth. C) a zero rate of depreciation. D) continuous increases in the national saving rate. E) continuous growth in the capital stock.
National income accountants define investment to include:
a) any increase in business inventories. b) the addition of cash to a savings account. c) the purchase of common or preferred stock. d) the purchase of any durable good, for example, an automobile or a refrigerator.
Which of the following is NOT a correct description of opportunity cost of capital?
A) It is the normal rate of return on investment. B) It is normally included in accounting costs. C) It is the income sacrificed by not investing in another firm. D) It is an implicit cost.
Refer to the information provided in Table 13.1 below to answer the question(s) that follow. Table 13.1Price ($)Quantity4.002,0003.502,4003.002,8002.503,2002.003,6001.504,0001.004,400Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the level of output that would maximize its profits?
A. 2,000 B. 2,400 C. 2,800 D. 3,200