If the supply schedule for a product has an upward slope and the price of that product declines from $100 to $75, the:
a. Quantity supplied of the product will increase
b. Quantity supplied of the product will decline
c. Supply of the product will shift to the right
d. Supply of the product will shift to the left
b. Quantity supplied of the product will decline
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The CPI was 225 in 2008 and 232.2 in 2009. The nominal interest rate during this period was 1.4 percent. What was the real interest rate during this period?
A) 3.2 percent B) 1.8 percent C) 4.6 percent D) -3.2 percent E) -1.8 percent
A business cycle refers to the
A) continued expansion in Real GDP. B) recurrent swings (up and down) in Real GDP. C) continued decline in Real GDP. D) period when Real GDP grows at unusually high rates. E) none of the above
Other things constant, an increase in the demand for motorcycles will
a. decrease the price of motorcycles. b. decrease the quantity of motorcycles bought and sold. c. decrease the demand for motorcycle workers and lower their wages. d. increase the demand for motorcycle workers and increase their wages.
Answer the following questions true (T) or false (F)
1. Allocative efficiency is achieved in an industry when firms supply those goods and services that provide consumers with a marginal benefit equal to the marginal cost of producing those goods and services. 2. A perfectly competitive firm in long-run equilibrium produces output at the lowest possible average total cost.