A severe drought has devastated cocoa plants, causing an increase in the price of chocolate. In the market for chocolate chip cookies
A. quantity has decreased and price has decreased.
B. a surplus will arise.
C. quantity demanded has increased.
D. supply has decreased and price has increased.
Answer: D
You might also like to view...
Refer to the production possibilities frontier in the figure above. More of good X must be given up per unit of good Y gained when moving from point b to point a than when moving from point c to point b. This fact
A) illustrates decreasing opportunity cost. B) illustrates increasing opportunity cost. C) indicates that good X is more capital intensive than good Y. D) indicates that good Y is more capital intensive than good X.
Suppose that the real exchange rate between the United States and South Korea is defined in terms of baskets of goods. Other things the same, which of the following will increase the real exchange rate (that is increase the number of baskets of South Korean goods a basket of U.S goods buys)?
a. a decrease in the quantity of South Korean currency that can be purchased with a dollar b. a decrease in the price of U.S. baskets of goods c. a decrease in the price in South Korean currency of South Korean goods. d. None of the above is correct.
A worker who loses a job at a petroleum refinery because consumers and business firms switch from the use of oil to natural gas is an example of
A. frictional unemployment. B. structural unemployment. C. cyclical unemployment. D. disguised unemployment.
A profit-maximizing monopolist will produce the level of output where
A. marginal revenue is zero. B. price equals marginal cost. C. marginal revenue equals marginal cost. D. marginal cost is minimized.