Refer to the diagrams, in which AD 1 and AS 1 are the "before" curves and AD 2 and AS 2 are the "after" curves. Other things equal, a decrease in resource prices is depicted by:
A. panel (A) only.
B. panel (B) only.
C. panel (C) only.
D. panels (B) and (C).
C. panel (C) only.
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Suppose you know a piece of land will be worth $1 million (real) in 2025, and the real interest rate is 5%. About how much should you be willing to pay for the land today (20150)? (Assume no taxes)
a. $610,000 b. $1 million c. $1.89 million d. $230.000
Which value is higher? a) $1,000 today or b) $10,000 in 20 years if the interest rate is 12%.
What will be an ideal response?
International trade patterns are broadly consistent with the Heckscher-Ohlin prediction that nations tend to export the products that use their abundant factors intensively.
Answer the following statement true (T) or false (F)
Both Jill and John own toothpick factories. Jill's factory has low fixed costs and high variable costs. John's factory has high fixed costs and low variable costs. Currently each factory is producing 1,000 boxes of toothpicks at the same total cost. Complete the following statement with the correct answer. If each produces
A. more, their costs will be equal. B. less, their costs will be equal. C. less, the costs of Jill's factory will exceed those of John's factory. D. more, the costs of Jill's factory will exceed those of John's factory.