How will a reduction in the price of cotton influence the market for blue jeans?
a. The cost of producing blue jeans will fall, and the supply curve for blue jeans will shift to the left.
b. The cost of producing blue jeans will fall, and the supply curve for blue jeans will shift to the right.
c. The cost of producing blue jeans will rise, and the supply curve for blue jeans will shift to the left.
d. The cost of producing blue jeans will rise, and the supply curve for blue jeans will shift to the right.
B
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A normal profit is defined as
A) total revenue minus explicit costs. B) the same thing as accounting profit. C) the return to entrepreneurshi
If it costs View Your World, a high-end window manufacturer, $25 per window to install a higher quality glass in its windows and consumers will pay an additional $30 per window for the improvement, which of the following is true?
A) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. B) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost. C) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost. D) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
If the demand for British pounds decreases,
a. the equilibrium price of the pound will increase b. the equilibrium price of the pound will decrease c. the equilibrium price of the pound will not change d. the equilibrium price of the pound will change, but we need additional information to predict the direction of the change e. no one can predict what will happen
Price elasticity of demand along a linear, downward-sloping demand curve increases as price falls
a. True b. False Indicate whether the statement is true or false