Assume that Figure 4-16 shows the supply of steak. An increase in the price of cattle feed will change the supply from
A. S1to S2.
B. S2to S1.
C. S2to S3.
D. S1to S3.
Answer: B
You might also like to view...
The supply and demand for wheat is given by QS = 200 + .2A + p and QD = 500 - p, where p is the price of wheat and A is the amount of rainfall (inches per year). The effect of an incremental increase in rainfall on equilibrium will be
A) a decrease the price of wheat by 10¢. B) a decrease the price of wheat by 20¢. C) an increase in the price of wheat by 20¢. D) an increase in the price of wheat by 10¢.
It can be shown using the IS-LM-FX model that a temporary expansion in the supply of money is effective in:
A) raising rates of interest. B) raising the rate of unemployment. C) combating temporary downturns in the economy. D) increasing consumer confidence.
The structural deficit or surplus
A. shows the government where to make cuts in expenditures to follow the balanced budget requirement. B. reveals the complicated structure underlying government spending and tax policy. C. is the hypothetical deficit or surplus under current fiscal policies if the economy were operating near full employment. D. includes all government budgets-federal, state, and local.
For which of the following goods is the price least likely to be flexible?
A. Airline tickets B. Beer C. Milk D. Newspapers