Assuming That Soybeans and Tobacco Can Both Be Grown on the Same

question 142

Multiple Choice

Assuming that soybeans and tobacco can both be grown on the same land, a decrease in the price of tobacco, other things being equal, causes a(n) :

• A) rightward shift of the supply curve for tobacco.
• B) upward movement along the supply curve for soybeans.
• C) rightward shift in the supply curve for soybeans.
• D) leftward shift in the supply curve for soybeans.

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Definitions:

Industry Supply Curve

A graphical curve that shows the total quantity of a good that producers in an industry are willing and able to supply at different price levels.

Long-run Total Cost

The total cost associated with the production of a certain quantity of output when all inputs, including both fixed and variable, are fully adjustable.

Average Cost Function

An equation that represents the total cost of producing goods or services divided by the quantity of goods or services produced.

Fertility Index

A measure used to evaluate the fertility rate of a population, taking into account the number of children born to women of childbearing age.