Corn chips and potato chips are substitutes. Good weather that sharply increases the corn harvest would
a. increase consumer surplus in the market for corn chips and decrease producer surplus in the market for potato chips.
b. increase consumer surplus in the market for corn chips and increase producer surplus in the market for potato chips.
c. decrease consumer surplus in the market for corn chips and increase producer surplus in the market for potato chips.
d. decrease consumer surplus in the market for corn chips and decrease producer surplus in the market for potato chips.
a
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Which of the following is not a rationale for development planning?
(a) capital market failures. (b) rent seeking behavior. (c) attitudinal or psychological impact. (d) all are rationales for development planning in developing countries.
If some nonprice level determinant causes total spending to decrease, then the effect on aggregate demand will be a: a. movement upward along the curve
b. movement downward along the curve. c. shift to the left. d. shift to the right.