Refer to the graph shown.If suppliers can restrict output from M to L, the price will:

A. rise from PM to PL.
B. fall from PL to PM.
C. fall from PM to PL.
D. rise from PL to PM.


Answer: A

Economics

You might also like to view...

Assume a customer of natural gas is negotiating with his supplier over the telephone. At the time prices of all the supplier's competitors are precisely the same

The customer tells the supplier that if he raises his price even one penny he will walk away. What does the perceived demand curve for natural gas look like for this customer? Why?

Economics

What is the most important factor that explains differences in living standards among countries?

a. labor unions b. minimum wage laws c. productivity d. efficiency

Economics

Under conditions of a liquidity trap and interest-insensitive investment, Keynesians would be most likely to propose __________ policy to eliminate a recessionary gap

A) expansionary fiscal B) contractionary fiscal C) expansionary monetary D) contractionary monetary

Economics

Refer to the information provided in Table 3.2 below to answer the question(s) that follow.Table 3.2Price per CheeseburgerQuantity Demanded (Cheeseburgers per Month)Quantity Supplied (Cheeseburgers per Month)$51,500  500  61,200  700  7   900  900  8  6001,100  9  3001,300Refer to Table 3.2. If the price per cheeseburger is $9, there is a(n)

A. excess demand of 300 units. B. excess demand of 500 units. C. market equilibrium. D. excess supply of 1,000 units.

Economics