An improvement in production technology will
A. shift the demand curve to the left.
B. shift the supply curve to the left.
C. shift the supply curve to the right.
D. increase equilibrium price.
Answer: C
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The market for fish is perfectly competitive. So, the price elasticity of demand for fish from a single fishing boat
A) is less than the elasticity of demand for fish overall. B) equals the elasticity of demand for fish overall. C) is greater than the elasticity of demand for fish overall. D) is sometimes greater than and sometimes less than the elasticity of demand for fish overall.
In the short run, a competitive firm has a marginal product of labor, MPL = 5L-0.5. The output price is $10 per unit and the wage is $7 per hour. The short-run labor demand curve for the firm is
A) 5L-0.5. B) 15L-0.5. C) 35L-0.5. D) 50L-0.5.