An increase in the productivity of producing jeans results in
A) the quantity of jeans supplied increasing.
B) the supply of jeans increasing.
C) buyers demanding more jeans because they are now more efficiently produced.
D) buyers demanding fewer jeans because their price will fall, which signals lower quality.
E) some change, but the impact on the supply of jeans is impossible to predict.
B
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Suppose y = k1/2, total factor productivity is constant and equal to 1, s = 0.40, and d = 0.10. When the economy reaches the steady state, consumption per worker is ________
A) $1.20 B) $2.40 C) $4.80 D) $13.60
Planning a vacation at a beach resort, Joey found that hotel prices jumped during the peak summer season, with Fourth of July week being the most expensive of all. Which of the following best explains the seasonal price increase?
a. As demand falls in the summer, the hotel raises room rates to stay profitable. b. The resort raises prices to reduce occupancy during the busiest holiday periods. c. Higher demand drives up prices in the summer as more people take vacations. d. Resorts raise prices in the summer to make people feel their vacation is exclusive.