Which of the following scenarios fits these two graphs?
a. A farm continues to earn a profit as the market supply decreases, causing the market price to increase.
b. A farm’s economic profits return to zero as the market supply increases, causing the market price to decrease.
c. A farm’s profit plunges to a loss as the market supply decreases, causing the market price to increase.
d. A farm earns excess profits as the market supply increases, causing the market price to decrease.
b. A farm’s economic profits return to zero as the market supply increases, causing the market price to decrease.
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In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market sale ________ the supply of reserves causing the federal funds rate to ________, everything else held constant
A) decreases; decrease B) increases; decrease C) increases; increase D) decreases; increase
Banking crises have occurred throughout the world. What similarities do we find when we look at the different countries?
What will be an ideal response?
In monopolistic competition, there are no brands, all the producers produce only identical, generic products
a. True b. False Indicate whether the statement is true or false
Hydraulic fracturing has unleashed a large supply of natural gas in the U.S., leading to large decreases in natural gas prices and therefore fertilizer (an important input in corn production) costs. What is the impact of the hydraulic fracturing revolution on the market for corn markets?
A. A shift to the right of the derived demand curve and an increase in the price of corn. B. A shift to the left of the supply curve and an increase in the price of corn. C. A shift to the left of the derived demand curve and a decrease in the price corn. D. A shift to the right of the supply curve and a decrease in the price of corn.