According to supply-side theorists, a decrease in marginal tax rates will provide the incentive to

Using the above figure, an increase in the demand for Dutch goods by U. S. consumers will lead to

A) a depreciation in the Dutch currency. B) an appreciation in the Dutch currency. C) an increase in the supply of Dutch currency as foreign exchange. D) a decrease in the supply of Dutch currency as foreign exchange.

Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. If he increases output to 220 earmuffs, his total cost increases to $2100, and his fixed cost remains $400. What is Ernie's marginal cost per earmuff?

A) $105 B) $35 C) $9.55 D) $5