Ian McDonald owns a company that sells sleds in a perfectly competitive market. A lighter-than-normal snowfall has caused the market demand curve for sleds to shift to the left. In the short run, which of the following is likely to happen?
a. The market price for sleds will remain unchanged.
b. The market price for sleds will increase.
c. More sled producers will enter the industry.
d. Increased economic profit will be earned by the firms in the sled industry.
e. The market price for sleds will fall.
E
Economics
You might also like to view...
When real income ________, the demand curve for money shifts to the ________ and the interest rate ________, everything else held constant
A) falls; right; rises B) rises; right; rises C) falls; left; rises D) rises; left; rises
Economics
Because of NAFTA, the U.S. shifts some of its imports from Europe to Mexico (a member of NAFTA). This is an example of
A) trade deflection. B) trade diversion. C) protectionism. D) rules of origin.
Economics