Refer to the above table. The market quantity supplied when the price is $7 is

If the long-run market supply curve is perfectly elastic, a decrease in variable cost will:

a. shift the supply curve upward to a higher market-clearing price level. b. shift the supply curve downward to a lower market-clearing price level. c. shift the supply curve to the right to a higher market-clearing output. d. shift the supply curve to the left to a lower market-clearing output.

Answer the following questions true (T) or false (F)

1. Suppose the extra cost for a town to lower its speed limit by 5 mph is $20 per day. Then, the town should lower the speed limit if it can generate an additional benefit of $20 per day. 2. All economic questions arise from the fact that resources are unlimited. 3. Even if the population declines, scarcity will still exist.