initial price of a pound of nails is $12, and the initial quantity supply of nails is 40K pounds. Which of the following correctly describes the effect of an INCREASE in the supply of nails while the price of a pound of nails remains at $12? A) The supply curve shifts right to S' (in blue), and the quantity supply of nails remains at 40K pounds. B) The supply curve shifts right to S' (in blue), and the quantity supply of nails increases to 55K pounds.
initial price of a pound of nails is $12, and the initial quantity supply of nails is 40K pounds. Which of the following correctly describes the effect of an INCREASE in the supply of nails while the price of a pound of nails remains at $12? A) The supply curve shifts right to S' (in blue), and the quantity supply of nails remains at 40K pounds. B) The supply curve shifts right to S' (in blue), and the quantity supply of nails increases to 55K pounds.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
Section: Chapter Questions
Problem 5SCQ: According to Table 19.7, how often have recessions occurred since the end of World War II (1945)?
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Consider the supply of nails shown in Figure 2. The initial supply of nails is S (in black), the initial price of a pound of nails is $12, and the initial quantity supply of nails is 40K pounds. Which of the following correctly describes the effect of an INCREASE in the supply of nails while the price of a pound of nails remains at $12?
A) The supply curve shifts right to S' (in blue), and the quantity supply of nails remains at 40K pounds.
B) The supply curve shifts right to S' (in blue), and the quantity supply of nails increases to 55K pounds.
C) The supply curve remains at S (in black), and the quantity supply of nails remains at 40K pounds.
D) The supply curve remains at S (in black), and the quantity supply increases to 55K pounds.
Transcribed Image Text:P
S"
S'
S'
$20
$12
$5
25К
40K
55 К
Qs
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