Holding other factors constant, bad weather causes the supply curve for agricultural products to
a. Shift to the left, causing the prices of agricultural products to rise
b. Shift to the left, causing the prices of agricultural products to fall
c. Stay the same
d. The supply curve does not shift. Only the demand curve shifts.
a
Economics
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When prices drop in response to a decline in demand for an increasing cost industry:
a. producer surplus will increase but rents may decrease. b. rent earned by elastically supplied inputs will decline by more than rent earned by inelastically supplied inputs. c. rent earned by elastically supplied inputs will decline by less than rent earned by inelastically supplied inputs. d. both producer surplus and rents will increase.
Economics
What is a normal rate of return?
What will be an ideal response?
Economics