Suppose That Some Resource X Is Necessary to Produce Some

question 63

Multiple Choice

Suppose that some resource X is necessary to produce some good Y.If the price of X falls,

• A)the supply curve of resource X shifts to the left.
• B)the supply curve of good Y shifts to the right.
• C)the supply curve of good Y is unaffected.
• D)there is a movement along the supply curve of good Y.
• E)the demand curve for X shifts to the right.

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Definitions:

Consumer's Surplus

The gap between the total sum consumers are ready and able to spend on a good or service and what they actually spend.

Used Cars

Pre-owned vehicles that have been previously registered and used by one or more owners.

Constant Marginal Cost

A situation where the marginal cost of producing one additional unit of output is the same, regardless of the level of production.

Separate Markets

Markets for different goods or services that do not affect each other, often due to geographical, product differentiation, or segmentation reasons.