The relationship between quantity supplied and the price of output is such that
A. an increase in quantity will automatically lead to a reduction in price.
B. an increase in price will lead to an increase in quantity supplied.
C. quantity will decrease as the number of firms increases.
D. an increase in price will produce an inward shift in the supply curve.
Answer: B
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During 2008 and 2009, the debt to GDP ratio in the United States
A) remained relatively unchanged, as it has since the mid 1970s. B) fell to its lowest level since World War I. C) is the highest it has been since the founding of the country. D) rose to its highest level since World War II.
The main reason that President Clinton was forced to revise his campaign promise to cut taxes was that, in 1993, he faced a large
a. balance of payments surplus. b. balance of payments deficit. c. federal budget deficit. d. federal budget surplus.
A country has an absolute advantage over another in the production of widgets if it can produce
a. widgets using smaller quantities of resources than can the other country. b. more widgets than can the other country. c. widgets more efficiently than can the other country. d. widgets at a lower opportunity cost than can the other country.
Consider the above figure. At income level Yd = $30, the APC is equal to
A. 1.67. B. 1.25. C. 1.05. D. 0.05.