Which of the following is likely to occur when there is a substantial increase in the market demand for coffee?
a. The wages of workers employed in coffee plantations will fall
b. The price of 10-gram coffee sachets will decrease.
c. The demand curve for coffee plantation workers will shift to the right.
d. The demand curve for coffee plantation workers will become horizontal.
c
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Proponents of the real business cycle model argue that the short-run aggregate supply curve is
A) flat. B) negatively sloped. C) positively sloped. D) vertical.
Opportunity cost is best defined as the:
a. sum of all alternatives given up when a choice is made. b. money spent once a choice is made. c. highest-valued alternative given up when a choice is made. d. cost of a good minus the satisfaction obtained from consuming it. e. cost of capital resources used in the production of additional capital.
A new technology that increases the productivity of teachers has what effect on the labor market for teachers?
a. The wage rate will rise, and quantity of teachers employed will fall. b. The wage rate will rise, and quantity of teachers employed will rise. c. The wage rate will fall, and quantity of teachers employed will fall. d. The wage rate will fall, and quantity of teachers employed will rise. e. There is not enough information to determine what effects there are, if any.
Refer to Figure 7-12 An increase in price from $30 to $35 would
a. increase total revenue by $250
b. decrease total revenue by $250.
c. increase total revenue by $500.
d. decrease total revenue by $500.