In the above figure, the shift in the supply curve from S to S2 might reflect
A) a decrease in the cost of the tomato sauce used to produce pizza.
B) a decrease in the number of pizza producers.
C) an increase in the price of a pizza.
D) an increase in income if pizza is a normal good.
E) an increase in the price of a good that is a substitute for consumers.
A
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Which of the following is not a common characteristic of oligopolistic firms?
a. high barriers to entry b. mutual interdependence c. a large number of sellers d. nonprice competition
A fixed exchange rate is an exchange rate whose value:
A. is set by official government policy. B. varies according to supply and demand for the currency in the foreign exchange market. C. reflects the comparative advantage of the home country versus other foreign countries. D. is established annually by the International Monetary Fund.