Which of the following would cause an increase in the supply of peanut butter?
A) a decrease in the price of grape jelly (assuming that peanut butter and grape jelly are complements)
B) an increase in the price of peanut butter
C) an increase in the number of firms that produce peanut butter
D) an increase the price of a product that producers sell instead of peanut butter
C
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A principal-agent problem arises in the situation in Scenario 17.5 because
A) the principal can measure effort and output; the agent can measure only output. B) the principal can measure only effort, and the agent can measure only output. C) the principal can measure only output, and the agent can measure effort and output. D) neither the principal nor the agent can measure effort. E) neither the principal nor the agent can measure output.
If the quantity demanded of a product rose from 900 to 1,200 when the price of the product fell from $11 to $9, the price elasticity of demand coefficient is equal to
a. -0.20. b. -0.70. c. -1.00. d. -1.42.