Other things remaining the same, what would happen to the supply of a particular commodity if the following changes occur?
The price of the commodity increases.
Government regulators outlaw the use of a technology that enables the good to be
produced at a significantly lower cost.
The prices of inputs used to produce the commodity decrease.
The price of a commodity that is a substitute in production increases.
Managers expect the price of the good to fall in the near future.
As the cost of capital rises, firms in the industry stop purchasing plant and equip-
ment, which allows depreciation to diminish the productive capacity in the indus- try.
What happens to demand when the following changes occur?
The price of the commodity rises.
Income decreases and the commodity is normal.
Income decreases and the commodity is inferior.
The price of a complement good increases.
The price of a substitute good decreases.
Other things remaining the same, what would happen to the supply of a particular commodity if the following changes occur?
The price of the commodity increases.
Government regulators outlaw the use of a technology that enables the good to be
produced at a significantly lower cost.
The prices of inputs used to produce the commodity decrease.
The price of a commodity that is a substitute in production increases.
Managers expect the price of the good to fall in the near future.
As the cost of capital rises, firms in the industry stop purchasing plant and equip-
ment, which allows depreciation to diminish the productive capacity in the indus- try.
What happens to demand when the following changes occur?
The price of the commodity rises.
Income decreases and the commodity is normal.
Income decreases and the commodity is inferior.
The price of a complement good increases.
The price of a substitute good decreases.
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