What will be the principal and most immediate effect on the supply or demand of raw cotton grown in the United States if a low-cost process for making cotton cloth wrinkle-free is developed?
A) Decrease in demand
B) Decrease in supply
C) Increase in demand
D) Increase in supply
C
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Using the above figure, at which price is there neither excess quantity demanded nor excess quantity supplied?
A) P1 B) P2 C) P3 D) none of these
Explain the relationship between elasticity of supply and time
What will be an ideal response?
A profit-maximizing perfect competitor will ___________ operate at that output at which MC = MR.
A. always B. usually C. sometimes D. rarely
Answer the following statement true (T) or false (F)
1) Rational individuals may make different choices because their preferences and circumstances differ. 2) Choices entail marginal costs because resources are scarce. 3) The production possibilities curve shows various combinations of two products that an economy can produce when achieving full employment. 4) The production possibilities curve shows various combinations of two products that an economy can produce when achieving full employment.