Refer to the diagram, which shows demand and supply conditions in the competitive market for product X. Other things equal, a shift of the supply curve from S 0 to S 1 might be caused by a(n):
A. increase in the wage rates paid to laborers employed in the production of X.
B. government subsidy per unit of output paid to firms producing X.
C. decline in the price of the basic raw material used in producing X.
D. increase in the number of firms producing X.
A. increase in the wage rates paid to laborers employed in the production of X.
You might also like to view...
Which of the following is TRUE about the long-run aggregate supply curve?
A) It is vertical at the level of potential GDP. B) It shows the relationship between the price level and real GDP when the economy is at full employment. C) It does not shift in response to temporary changes in aggregate demand. D) All of the above are true.
With economies of scale came
A) larger families. B) simpler business forms. C) the need for management structures beyond what a family could offer. D) fewer economies of scope.