In recent years, the cost of producing organic produce in the United States has decreased largely due technological advancement. At the same time, more and more Americans prefer organic produce over conventional produce
Which of the following best explains the effect of these events in the organic produce market?
A) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in both the equilibrium price and the equilibrium quantity.
B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
C) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
D) The supply curve has shifted to the left and the demand curve has shifted to the right. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.
B
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For a perfectly competitive firm, marginal revenue product is equal to:
a. price minus marginal cost. b. price times marginal revenue. c. price times marginal product. d. none of these.
If there is a stable downward-sloping Phillips curve, it follows that an economy can choose the combination of
A) high unemployment and low inflation. B) low unemployment and high inflation. C) moderate unemployment and moderate inflation. D) low inflation and low unemployment. E) a, b, and c