Briefly discuss the determinants of supply other than price
What will be an ideal response?
An increase in the costs of inputs used to produce the good will cause supply to decrease, while an increase in technology will cause supply to increase. The imposition of a tax on the good would cause supply to decrease, while a subsidy on the good would cause supply to increase. An increase in the number of firms producing the good causes the market supply to increase. A change in expectations about future prices also causes current supply to change.
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The table above gives Cathy's total utility from Mt. Dew. Cathy's marginal utility from additional Mt. Dews is
A) diminishing. B) increasing. C) constant. D) negative.
If inflation is completely anticipated
A) borrowers lose in the economy. B) firms lose because they incur menu costs. C) lenders lose in the economy. D) no one loses in the economy.