A more efficient means of processing tree bark to produce an ...

[bobypop]

A more efficient means of processing tree bark to produce an anticancer drug is discovered. As a result, the supply curve for the drug will:
 a. shift to the right, increasing the price of the drug.
  b. shift to the left, increasing the price of the drug.
  c. shift to the right, decreasing the price of the drug.
  d. shift to the left, decreasing the price of the drug.

Question 2

If MPC = 0.75, a 40 billion decrease in government purchases would have what size effect on the first round of changed consumption, and what effect on AD?
 a. reduce first round consumption by 160 billion; reduce AD by 640 billion
  b. reduce consumption by 120 billion; reduce AD by 480 billion
 c. reduce consumption by 40 billion; reduce AD by 160 billion
 d. reduce consumption by 30 billion; reduce AD by 160 billion

[pikon]

Answer to Question 1

c

Answer to Question 2

d

[bobypop]

Thanks for the timely response, appreciate it

[Jsherida]

Gracias!