What does the Law of Supply state? What is the key feature of a typical supply curve?
What will be an ideal response?
The law of supply states that in most cases, the quantity supplied of a good rises when the price of the good rises. A typical supply curve is upward sloping which shows the positive relationship between price and quantity supplied.
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In the figure above, the second richest 20 percent of households receive ________ of total income
A) 55 percent B) 35 percent C) 25 percent D) 45 percent
________are the owners of a corporation
A) Bondholders B) Top management C) The board of directors D) Stockholders
In general, an increase in wages will lead to some reaction in line with
a. the income effect but not the substitution effect. b. the substitution effect but not the income effect. c. both the income and substitution effect. d. neither the income effect nor the substitution effect.
In a monopolistically competitive market,
a. entry by new firms is impeded by barriers to entry; thus, the number of firms in the market is never ideal. b. entry by new firms is impeded by barriers to entry, but the number of firms in the market is nevertheless always ideal. c. free entry ensures that the number of firms in the market is ideal. d. there may be too few or too many firms in the market, despite free entry.