The derived demand curve for a resource is downward sloping because
a. the demand for products that utilize the resource is directly related to the price of the resource.
b. the marginal productivity of resources will decline as their price increases.
c. as the price of a resource rises, other resources will be less desirable than the higher priced resource.
d. other resources will be substituted for a resource that increases in price.
D
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Refer to Figure 11-18. Starting from point E, a movement along the isocost to point F
A) decreases output but not the total cost of production. B) decreases both the total cost of production and output. C) decreases the total cost of production but not output. D) increases the total cost of production and decreases output.
Exhibit 3-4 Supply curves
In Exhibit 3-4, a shift in the supply curve from S1 to S2 represents a(n):
A. decrease in supply. B. decrease in the quantity supplied. C. increase in supply. D. increase in the quantity supplied.