A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as

a. supply-side economics.
b. supplier-induced demand.
c. supply shocks.
d. ceteris paribus.
e. the fallacy of supply.

B

Economics

You might also like to view...

Burritos and margaritas are priced at $3 and $5 each, respectively. If the marginal utility of the last burrito is 15 utils, then, in consumer equilibrium, the marginal utility of the last margarita is:

a. 15 utils. b. 20 utils. c. 25 utils. d. 30 utils

Economics

Many economists think that, in the long run, the Phillips curve is

a. a horizontal line. b. a vertical line. c. the same as the short-run curve. d. a 45-degree line from the origin.

Economics