There are two techniques of egg production: free range (where hens roam around the farm) or factory (where hens are fed and watered in wire cages). The free range technique has a much more elastic supply curve than the factory technique
When the demand for eggs falls: A) egg production using the factory technique falls less than with the free range technique.
B) egg production using the factory technique falls more than with the free range technique.
C) the production using both techniques falls by the same amount.
D) the factory egg producers supply curve shifts inward.
E) the free range egg producers supply curve shifts inward.
A
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Refer to Figure 3-4. If the current market price is $15, the market will achieve equilibrium by
A) a price increase, increasing the quantity supplied and decreasing the quantity demanded. B) a price decrease, decreasing the supply and increasing the demand. C) a price decrease, decreasing the quantity supplied and increasing the quantity demanded. D) a price increase, increasing the supply and decreasing the demand.
When consumers lose confidence in the future of their economy, they begin to consume more, and this causes the aggregate demand curve to shift to the right
a. True b. False Indicate whether the statement is true or false