Use the following graphs for a perfectly competitive market in the short run to answer the next question.
What will happen in the long run to market supply and the equilibrium price of the product?
A. Market supply will increase and equilibrium price will increase.
B. Market supply will decrease and equilibrium price will decrease.
C. Market supply will decrease and equilibrium price will increase.
D. Market supply will increase and equilibrium price will decrease.
Answer: C
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Using the above table, moving from alternative C to alternative B, what is the opportunity cost of one loaf of bread?
A) 1 pizza pie B) 30 pizza pies C) 2 pizza pies D) 0.5 pizza pie
Canada is a major world producer and exporter of wheat and a great percent of its GDP is derived from this one good. The Canadian parliament may vote to restrict trade and justify its restrictions using the
a. cheap foreign labor argument b. antidumping argument c. national security argument d. infant industries argument e. diversity of industry argument