Author Question: Opportunity cost exists because A) of scarcity. B) prices must adjust to eliminate shortages. ... (Read 98 times)

lunatika · **on:** Jun 29, 2018

Opportunity cost exists because

A) of scarcity.
B) prices must adjust to eliminate shortages.
C) production could not occur without the opportunity cost of using resources.
D) the value of economic goods is positive while the value of goods is zero.

Question 2

More farmers have recently entered the corn industry. In addition there has been a technological advancement in the fertilizer industry providing corn farmers with a cheaper and a more effective fertilizer.

In the market for corn, the effects these changes will have on the equilibrium price and quantity are A) price will increase, and quantity will decrease.
B) price will increase, and the effect on quantity is indeterminate.
C) price will decrease, and quantity will increase.
D) price will decrease, and the effect on quantity is indeterminate.