Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?
a. an increase in consumer income
b. a decrease in consumer income
c. greater government restrictions on agricultural chemicals
d. fewer government restrictions on agricultural chemicals
b
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Which of the following statements is true of the short run?
A) Identical firms can enjoy positive economic profits. B) Identical firms face a downward-sloping supply curve. C) Non-identical firms face a downward-sloping supply curve. D) Non-identical firms cannot enjoy positive economic profits.
"Farm subsidies in the European Union spill over to the rest of the world." Explain this assertion
What will be an ideal response?
What is economic growth and why are growth rates so important?
What will be an ideal response?
The long-run aggregate supply curve (LRAS) is: a. a vertical curve that relates the level of real GDP produced to the price level in the long run
b. an upward sloping curve that relates the level of real GDP produced to the price level in the long run. c. an infinite curve that relates the level of real GDP produced to the price level in the long run. d. none of the above are true.