A decrease in the price of milk (and ingredient of ice cream) will result in a(n):
A) shift of the supply curve of ice cream to the left.
B) shift of the supply curve of ice cream to the right.
C) lower price of ice cream, and thus an increase in the demand for ice cream.
D) increase in the demand for ice cream and a decrease in the supply of milk.
Ans: B) shift of the supply curve of ice cream to the right
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Suppose a nation's population grows by 2 percent and, at the same time, its GDP grows by 5 percent. Approximately how fast will real GDP per person increase?
A) 3 percent per year B) 2 percent per year C) 5 percent per year D) 10 percent per year
The concavity (bowed-out shape) of the production possibilities curve is the result of: a. the law of demand
b. the law of supply. c. the law of increasing opportunity cost. d. complementarily in consumption.