Which of the following scenarios fits these two graphs?





a. A farm continues to earn a profit as the market supply decreases, causing the market price to increase.

b. A farm’s economic profits return to zero as the market supply increases, causing the market price to decrease.

c. A farm’s profit plunges to a loss as the market supply decreases, causing the market price to increase.

d. A farm earns excess profits as the market supply increases, causing the market price to decrease.

b. A farm’s economic profits return to zero as the market supply increases, causing the market price to decrease.

Economics

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Points inside a production possibilities curve are ________ and ________

A) efficient; unattainable B) inefficient; unattainable C) efficient; attainable D) inefficient; attainable

Economics

Suppose the demand curve for a product is downward sloping and the supply curve is upward sloping. If a unit tax is imposed in the market for this product,

A) sellers bear the entire burden of the tax. B) the tax burden will be shared among the government, buyers and sellers. C) the tax burden will be shared by buyers and sellers. D) buyers bear the entire burden of the tax.

Economics