A change in the price of a good ____ its supply curve and ____ a movement along its supply curve. Question 10 options:
A. shifts; does not cause
B. shifts; causes
C. does not shift; causes
D. does not shift; does not cause
E. None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the
C. does not shift; causes
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Assume that the price elasticity of demand for gasoline is -0.06. If the government tax causes the price of gasoline to increase by 50 percent, what will be the decrease in the quantity of gasoline demanded?
A) 0.5 percent B) 3.0 percent C) 8.33 percent D) 50 percent
If it is easy to uncover buy and sell orders above and below current transactions prices, a market is said to
A) be primary. B) lack breadth. C) be deep. D) be resilient.
Suppose that the central bank is required to follow a monetary policy rule to stabilize prices. If the economy starts at long-run equilibrium and then aggregate supply shifts right, the central bank would have to
a. increase the money supply, which causes output to move closer to its long-run equilibrium. b. increase the money supply, which causes output to move farther from long-run equilibrium. c. decrease the money supply, which causes output to move closer to its long-run equilibrium. d. decrease the money supply, which causes output to move farther from long-run equilibrium.
At the Trolley House bar even the worst bartender makes $50 in tips a night, but most make $100. Tom, however, is the rare bartender who do fancy tricks with the bottles and make snazzy jokes. Tome earns $250 in tips per night. Tom’s economic rent is
A. $50. B. $150. C. $200. D. $250.