Wheat is the main input in the production of flour. If the price of wheat decreases, then we would expect the

a. demand for flour to increase.
b. demand for flour to decrease.
c. supply of flour to increase.
d. supply of flour to decrease.


Ans: c. supply of flour to increase.

Economics

You might also like to view...

Define the following terms: a) risky outcome. b) probability

What will be an ideal response?

Economics

Events that shift the Ap demand schedule to the left also cause ________ the IS curve

A) movements downward along B) movements upward along C) parallel rightward shifts of D) parallel leftward shifts of

Economics

The efficient markets hypothesis predicts that an investor

A) will not be able consistently to earn above-normal profits from buying or selling stocks. B) will be able consistently to earn above-normal profits from buying or selling stocks so long as he or she makes use of rational expectations. C) will be able consistently to earn above-normal profits from buying or selling stocks so long as he makes use of adaptive expectations. D) will be able consistently to earn above-normal profits so long as stock prices in general are rising.

Economics

If the government imposes a price floor that is higher than the market clearing price, then

A) consumer surplus will increase while producer surplus will decrease. B) consumer surplus will decrease while producer surplus will increase. C) both consumer surplus and producer surplus will decrease. D) both consumer surplus and producer surplus will increase.

Economics