Select the graph above that best shows the change in the market specified in the following situation: In the market for wheat, when the cost of fertilizer decreases.
Graph A
Graph B
Graph C
Graph D
Graph C
You might also like to view...
If disposable income increases by $500 million, and consumption increases by $400 million, then the marginal propensity to consume is
A) 1.25. B) 0.8. C) 0.6. D) 0.4.
If the demand increases in a perfectly competitive market, firms will likely:
A. set prices artificially higher permanently. B. have to engage in more advertising in order to further stimulate the increase in demand. C. enter the market in hopes of capturing some profits. D. experience a loss due to increased competition.
Suppose the economy experiences a recessionary gap. Expansionary monetary policy will
A) increase interest rates and increase exchange rates. B) increase interest rates and decrease exchange rates. C) decrease interest rates and increase exchange rates. D) decrease interest rates and decrease exchange rates.
Which of the following is a distinction between perfectly competitive and monopolistic competition?
A. Perfectly competitive firms must compete with rival sellers; monopolistically competitive firms do not confront rival sellers. B. Monopolistically competitive firms can raise their price without losing sales; perfectly competitive firms must lower their price in order to sell more of their product. C. Perfectly competitive firms confront a perfectly elastic demand curve; monopolistically competitive firms face a downward-sloping demand curve. D. Perfectly competitive firms may make either economic profits or losses in the short run, but monopolistically competitive firms always earn an economic profit.