The most plausible reason why changes in the price of cotton can cause shifts in the supply curve for tobacco is:
A. cigarette smokers often wear cotton shirts.
B. when incomes rise, people consume more cotton and tobacco.
C. firms can switch from growing tobacco to cotton and vice versa.
D. tobacco is an input in the production of cotton.
Answer: C
Economics
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A) lowered returns on corporate bonds. B) raised returns on corporate bonds. C) left returns on corporate bonds largely unaffected. D) raised returns on both corporate bonds and Treasury securities.
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Shortage of a good occurs if: a. the price of the good is higher than the equilibrium price
b. the government imposes a restriction on the consumption of the good. c. buyers want to buy more than sellers want to sell. d. buyers want to buy less than sellers want to sell.
Economics