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4886

The price of soap rose from $10 to $20, causing a trader to increase her supply from 50 to 120 boxes per week. This makes supply

  • A. inelastic
  • B. fairly elastic
  • C. unitary elastic
  • D. perfectly inelastic
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4887

A  leftward shift in the supply curve for a commodity indicates

 

  • A. a reduction in quantity supplied
  • B. a decrease in supply
  • C. an increase in quantity supplied
  • D. an increase in supply
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4888

Market supply may increase if there is an increase in the

 

  • A. prices of factors of production
  • B. subsidies on raw materials
  • C. tax paid on raw materials
  • D. price of the product
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4889

Governments can increase farmers' incomes by

 

  • A. encouraging them to produce surplus output
  • B. fixing minimum price
  • C. increasing taxes on inputs
  • D. fixing maximum prices
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4890

When market supply increases, the equilibrium price

 

  • A. and quantity fall
  • B. and quantity increase
  • C. rises and quantity falls
  • D. falls and quantity rises
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