If the cost of producing butter increases, what will happen to the equilibrium price and quantity of butter exchanged?Price Quantity
a. Decrease Increase
b. Decrease Decrease
c. Increase Decrease
d. Increase Increase
c. Increase Decrease
You might also like to view...
Use the figure below to answer the following question. The equilibrium point in the market is the point at which the S and D curves intersect.
At equilibrium, the producer surplus would be represented by the area
A. b. B. b + c + d. C. a. D. a + b.
When a recession ends, the turning point that immediately follows is called a
A) trough. B) peak. C) depression. D) None of the above answers is correct.
Most pharmaceutical firms selling prescription drugs continue to earn economic profits long after the patents on the prescription drugs expire because they have established a strong foothold in the market
Indicate whether the statement is true or false
Which of the following indicates that economies of scale have been overridden by other factors?
a. A company seeking to save on architect's fees during its move to Maryland copies the same building it used in San Francisco, so now it occupies the only office in Baltimore built to withstand earthquakes. b. The workers on the night shift at the Roadkill Diner, having no customers of their own, peel 400 potatoes, fill 300 catsup bottles, fry 100 pounds of bacon, and brew 80 quarts of coffee for the morning shift. c. Denny's Restaurant serves potatoes with its breakfasts nationwide, but in the South you can get grits instead. d. The Creepy Critters Summer Camp decides not to give campers a choice between hamburgers and hot dogs but makes creamed chipped beef on toast for everybody. e. Henry Ford said that his customers could have any color car they wanted, as long as they wanted black.