Which of the following is true about the market supply for resources?
a. The market supply curve of a resource reflects the maximum willingness-to-pay for all firms purchasing resources in the resource market.
b. The market supply curve of a resource is derived from the value of the final goods and services produced with the resource.
c. The market supply curve of a resource slopes upward because higher resource prices draw resources from lower-valued uses, and because suppliers are able to supply more of the resource at a higher price.
d. The market supply curve of a resource slopes downward because suppliers are able to supply less of the resource at a higher price.
c
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Refer to Figure 23-1. If the economy is in equilibrium, it is at a level of aggregate expenditure given by point
A) J. B) K. C) L. D) Points J, K and L all represent equilibrium.
Assuming that wine is a normal good, an increase in consumer income, other things being equal, will:
a. cause an upward movement along the demand curve for wine. b. shift the demand curve for wine to the left. c. cause a downward movement along the demand curve for wine. d. shift the demand curve for wine to the right.