Figure 3-11
In , suppose D1 and S1 indicate initial conditions in the market for kitchen cabinets. Which of the following would tend to cause the supply curve to shift from S1 to S2?
a.
the invention of "folding" plates and cups that take up substantially less storage space in the kitchen
b.
a decrease in consumer income
c.
a decrease in the price of wood, a resource used to produce kitchen cabinets
d.
an increase in the price of steel hinges, a resource used to produce kitchen cabinets
c
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The Keynesian portion of the short-run aggregate supply (SRAS) curve implies
A) a downward slope. B) no price level changes. C) flexible prices and wages. D) an upward slope.
The benefit of a one-unit increase in an activity
A) decreases as you do more of it. B) is called rational-choice benefit. C) is called marginal cost. D) is always greater than the opportunity cost of that activity. E) is measured by what you must give u