Consider a graph illustrating the upward sloping supply curve for coffee. What would you expect to happen if the government decided to levy a 75-cents per gallon subsidy on coffee?

a. There would be a movement up along the supply curve.
b. There would be a movement down along the supply curve.
c. The supply curve would shift to the left.
d. The supply curve would shift to the right.
e. None of the above.


Ans: d. The supply curve would shift to the right.

Economics

You might also like to view...

The AD Curve ________

A) demonstrates how central banks respond to changes in interest rates by changing the inflation rate B) shows how changes in equilibrium output affect the inflation rate C) explains long run fluctuations in output and inflation D) all of the above E) none of the above

Economics

What is one reason for the high interest rates for home loans offered to those with low credit ratings?

A) Predatory lending practices B) Those with lower credit ratings faced a restricted supply of loans, ceteris paribus. C) Those with lower credit ratings typically demand greater loans, ceteris paribus. D) Government regulation

Economics

Expansionary open market operations (OMO) by a nations's Central Bank (CB) refers to:

A) The purchase of government bonds (Treasury securities) by a nation's CB in a primary market transaction. B) The purchase of government bonds (Treasury securities) by a nation's CB in a secondary market transaction. C) The selling of government bonds (Treasury securities) by a nation's CB in a primary market transaction. D) The selling of government bonds (Treasury securities) by a nation's CB in a secondary market transaction. 1. B and D Conly 2. B only 3. D only 4. C only

Economics

Current income minus spending on current needs equals:

A. wealth. B. investment. C. transfers. D. saving.

Economics