When economists say the supply of a product has decreased, they mean that:
a. the supply curve has shifted to the left.
b. the product price has decreased, and as a consequence, suppliers are producing less of the product.
c. producers are now willing to sell more of this product at each possible price.
d. the supply curve has shifted to the right.
a
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We use interest rates to measure the opportunity cost of holding money
Indicate whether the statement is true or false
Types of money used by colonists included all of the following except:
a. gold and silver coins. b. bills of exchange. c. bills of credit. d. government-issued fiat currency.
A Giffen good is a good for which
a. a decrease in the price decreases the quantity demanded. b. the substitution effect outweighs the income effect. c. an increase in the price decreases the quantity demanded. d. Both a) and b) are correct.
Composite error is the error that occurs due to _____.
A. the incorrect measurement of explanatory variables B. the inclusion of too many explanatory variables in the model C. correlation between the independent variables D. unobserved factors affecting a dependent variable