Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause:
a. an increase in supply, or a rightward shift of the supply curve
b. a decrease in supply, or a leftward shift of the supply curve.
c. an increase in quantity supplied, or a movement down the supply curve.
d. a decrease in quantity supplied, or a movement up the supply curve.
a
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If, for a $1000 premium, you buy a $100,000 call option on bond futures with a strike price of 114, and at the expiration date the price is 110, your ________ is ________
A) profit; $1000 B) loss; $1000 C) profit; $3000 D) loss; $3000
Based on our understanding of the model presented in Chapter 3, we know that an increase in c1 (where C = c0 + c1YD) will cause
A) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a smaller effect on output. B) the ZZ line to become steeper and a given change in autonomous consumption (c0 ) to have a larger effect on output. C) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a smaller effect on output. D) the ZZ line to become flatter and a given change in autonomous consumption (c0 ) to have a larger effect on output.