The price of chocolate chips has increased. For the producers of chocolate chip cookies, this means:
A. they can supply more at each price because some of the competition will drop out.
B. they can supply less at each price because the price of a main input has gone up.
C. they can supply more at each price because the price of a main input has gone up.
D. they can supply more at each price because of more competition.
B. they can supply less at each price because the price of a main input has gone up.
You might also like to view...
Tom says the economy should focus more on producing fun things people can buy if it is going to grow. Sam says if the economy is going to grow, it should consume less now and invest in education, factories, and research. Who is right and why?
What will be an ideal response?
Suppose that supply increases and demand decreases. What effect will this have on price and quantity?
A. Price will decrease and quantity will increase. B. Price will decrease and quantity will decrease. C. Price will increase and quantity may rise or fall. D. None of the statements associated with this question are correct.
The figure below represents the domestic market for wheat in a small country. Imports of wheat are prohibited.
Following the imposition of a $20 per bushel export subsidy to the country's wheat exports, the country consumed ________ bushels of wheat and exported ________ bushels of wheat.
A. 60; 90 B. 60; 60 C. 40; 80 D. 40; 110
The conversion of resources into consumer goods or services is called
A) human capital. B) production. C) opportunity cost. D) consumption.