Suppose that the price of lettuce used to produce tacos increases. This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
E) does not change; decreases
B
Economics
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A theory or a model
A) is a simplified, abstract view of reality. B) is based on each economist's value judgments. C) is a detailed analysis of what ought to be. D) captures all aspects of the real world.
Economics
When a firm decides to hire more workers because local wage rates have decreased, this is an example of
a. substitution in consumption. b. market failure. c. labor exploitation. d. substitution in production.
Economics