The initial supply and demand curves for a good are illustrated in the above figure. If there is a rise in the price of a factor of production used to produce the good, then the new equilibrium price
A) is less than $6.
B) is $6.
C) is more than $6.
D) could be less than, equal to, or more than $6.
C
Economics
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Which of the following is an assumption of the Lewis two-sector model?
a. surplus labor in the rural sector b. high unemployment in the urban modern sector c. rising real urban wages d. rising marginal product of labor in the rural sector
Economics
Rent controls can result in
a. deteriorating or abandoned buildings b. strong incentives to oust protected tenants c. payments to motivate tenants to move out d. benefits to rich people who get a windfall from low rents e. All of the answers are correct.
Economics