Refer to the figure below, which shows three supply curves for corn. Which of the following would cause the supply of corn to shift from S1 to S2?
A. An increase in the price of fertilizer
B. A change in consumer tastes away from cornbread
C. A decrease in consumer incomes, assuming corn is a normal good
D. The development of a more effective insecticide against corn rootworm
Answer: D
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Table 5.3National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$8,200Exports$1,700Government purchases of goods and services$2,500Social Security taxes$1,900Net investment$1,400Indirect business taxes$1,400Imports$1,900Gross investment$1,800Corporate income taxes$600Personal income taxes$1,500Corporate retained earnings$130Net foreign factor income$100Government transfer payments to households$1600Net interest payments to households$500On the basis of Table 5.3, the value of the income aggregate that is defined as "after-tax income of consumers" (also known as disposable income) is
A. $10,070 billion. B. $10,600 billion. C. $8,570 billion. D. $11,570 billion.
In a competitive market, the market demand is Qd = 150 - 2P and the market supply is Qs = 30 + 4P. A price ceiling of $16 will result in a
A. shortage of 34 units. B. surplus of 34 units. C. surplus of 58 units. D. shortage of 24 units.
If rival oligopolists completely ignore Mitchell's Tool Company's price changes, then Mitchell's Tool Company's
A. Demand curve will be less elastic than if rivals matched price changes. B. Most profitable strategy will be to raise its price. C. Demand and marginal revenue curves will be the same. D. Demand curve will not have a kink.
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one advantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would face limited liability. B) As a sole proprietor, Torrie would have the ability to share risk with shareholders. C) As a sole proprietor, Torrie would have both ownership and control over the business. D) All of the above would be advantages of setting up her business as a sole proprietorship.