Inflation tends to ________ during the expansion phase of the business cycle and ________ during the recession phase of the business cycle

Does the fact that diamonds are so expensive imply that the demand curve for diamonds has a positive slope? Use marginal utility theory to answer the question

What will be an ideal response?

Suppose the development of new drought-resistant hybrid seed corn leads to a 50-percent increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the conditions in the corn production industry are approximated by the price-taker model, which of the following is most likely to occur?

a. The price of corn will increase. b. The price of soybeans (a substitute for corn) will increase. c. The profits of corn farmers who quickly adopt the new technology will increase. d. The profits of corn farmers who do not adopt the new technology will increase.