Suppose that the garden gnome industry was in long-run equilibrium given the circumstances described Suppose, that it was discovered to everyone's surprise on January 1, 1993, after it was too late to change orders for gnome molds, that the cost of the plaster and labor needed to make a gnome had changed to $6.If the demand curve does not change, what will happen to the equilibrium price of gnomes?
A) Falls by $1.
B) Rises by $6.
C) Stays constant.
D) Rises by $1.
E) Falls by $3.
Correct Answer:
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Q3: Suppose that the cost of capturing a
Q4: if the cost of plaster and labor
Q5: if the cost of plaster and labor
Q6: Suppose that the garden gnome industry was
Q7: if the cost of plaster and labor
Q8: Suppose that the garden gnome industry was
Q9: Suppose that the cost of capturing a
Q10: Suppose that the garden gnome industry was
Q11: Suppose that the garden gnome industry was
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