Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result
A) the supply curve for sugar will shift to the right.
B) the supply curve for sugar will shift to the left.
C) the supply curve for cereal will shift to the right.
D) the supply curve for cereal will shift to the left.
Answer: D) the supply curve for cereal will shift to the left.
Economics
You might also like to view...
A consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S. If the price of shelter increases by 2 and consumption of shelter remains constant at 20, how will consumption of food change?
A) decrease by 10 B) decrease by 20 C) decrease by 40 D) decrease by 60
Economics
Which is the primary focus of study in macroeconomics?
a. An industry b. The national economy c. A business firm d. A household
Economics