N d. be unobtainable because it exceeds the productive capacity of the economy Use the Following Graph to Answer Question 4 4. Suppose that a new fertilizer is invented which greatly increases the productivity of apple trees. From the figures above, choose the one which best illustrates the change in the production possibilities caused by this increased productivity, all other things unchanged. A d. A reduction in the price of A 6. Substitution and income effects of a change in the price of a good may help explain the a. direct relationship between income and demand b. direct relationship between price and quantity supplied c. direct relationship between price and quantity demanded d.
Utility refers to a. a shift in the demand curve for a good b. a decline in the supply of a good c.
A firm's total cost a. is always constant b. A young chef is considering opening his own restaurant. For a perfectly competitive firm, the short-run supply curve is a. the rising section of the marginal cost curve b. The firm is producing the profit-maximizing output b. The firm could increase its profit by increasing its price c.