A fall in the price of milk, used in the production of ice cream, will:
a. Decrease the supply of ice cream, causing the supply curve of ice cream to shift to the left
b. Have no effect on the supply of ice cream
c. Cause a downward movement along the supply curve of ice cream
d. Increase the supply of ice cream, causing the supply curve of ice cream to shift to the right
d. Increase the supply of ice cream, causing the supply curve of ice cream to shift to the right
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The Keynesian short-run aggregate supply (SRAS) curve
A) shows that real Gross Domestic Product (GDP) will increase only if the price level increases. B) is horizontal. C) assumes a full-employment level of real Gross Domestic Product (GDP). D) does not reflect any changes in nominal Gross Domestic Product (GDP).
In the figure above, point E could be obtained if
A) resources were shifted from education to health care. B) resources were used more efficiently. C) society's resources increased. D) resources were shifted from health care to education.
Which of the following is false?
a. Products with more close substitutes have more elastic demand b. The demand for any individual brand is less elastic than industry aggregate demand c. Products with many complements have less elastic demand d. In the long run, demand curves become more elastic
Who is most likely to be worried about high inflation?
(A) A retired couple on a fixed income (B) A shopkeeper (C) A doctor with a suburban practice (D) A factory worker