If the world supply of diamonds decreases, diamonds become more valuable, and therefore, the consumer surplus derived from diamonds increases

The interest-rate effect

a. depends on the idea that increases in interest rates decrease the quantity of goods and services demanded. b. depends on the idea that increases in interest rates decrease the quantity of goods and services supplied. c. is responsible for the downward slope of the money-demand curve. d. is the least important reason, in the case of the United States, for the downward slope of the aggregate-demand curve.

Refer to the table above. What is the marginal rent cost if the firm decides to choose factory Very Close over factory Close?

A) -$100 B) -$200 C) $100 D) $200