Which of the following choices correctly illustrates how changesin opportunity costs affect supply?
A) A farmer produces corn and wheat.The price of wheat rises; so he shifts his resources towards wheat and the supply of
Wheat rises.
B) A fisherman fishes for lobsters and oysters.The price of lobsters rises; so he decides to spend more of his time fishing for
Oysters because he can make the same amount of money with
Fewer lobsters.
C) A textbook for economics becomes cheaper; so more students opt to buy that particular textbook.
D) Milk and cereal are complementary goods; so when the price of cereal falls, the quantity supplied of milk rises.
Correct Answer:
Verified
Q81: If the price of ski lift tickets
Q105: An increase in the use of labor-saving
Q149: New production technology in the manufacture of
Q181: Joe runs a landscape company and uses
Q201: An increase in income increases the demand
Q219: Consumer surplus can be defined as the
Q230: Advertising, fads, and fashion are examples of
Q233: NAFTA increased the supply curve of lumber
Q236: A tax of $4 shifts the supply
Q240: Producer surplus can be defined as the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents