If the long-run industry supply curve in a perfectly competitive market is horizontal, then very likely input prices will ____ as industry output expands
a. increase
b. decrease
c. remain constant
d. first increase and then decrease
c
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Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A) Unusually good weather causes the wheat crop to be larger than normal. B) Both the labor force and the population increased. C) Winter storms cause factories in the north to be shut down for several weeks. D) Government spending increased causing aggregate demand to increase.
As the price of a product rises, the quantity supplied decreases
Indicate whether the statement is true or false
According to the graph shown, producer surplus is:
A. $36.
B. $48.
C. $120.
D. None of these.
Under the U.S. Constitution, individual states
(a) have no power. (b) control laws regulating state businesses. (c) benefit from the ability to borrow from other countries to finance taxes due to the central government. (d) regulate trade with foreign countries conducted in and by the state.