Other things remaining the same, a fall in the price of peanuts will ________
A. increase the supply of peanuts
B. decrease the supply of peanut butter
C. decrease the quantity supplied of peanuts
D. decrease the supply of peanuts
C A fall in the price of the good creates a movement along the supply curve and decreases the quantity supplied.
You might also like to view...
Conspicuous consumption as an ability signal
A. completely different from a prisoner's dilemma. B. characterized by lower levels of consumption. C. is more effective if the positional goods nature of consumption causes everyone to consume elaborately. D. will likely continue even if it is wasteful for all involved.
One potential problem with using fiscal policy to close recessionary output gaps is that:
A. sustained government deficits can be harmful to long-run economic growth. B. it may be offset by automatic stabilizers. C. reductions in interest rates can reduce savings and, therefore, investment. D. decreased government spending can cause inflationary pressure to build.