Author Question: New reports indicate that eating turnips helps people remain healthy. The news shifts the demand ... (Read 45 times)

schs14 · **on:** Jun 29, 2018

New reports indicate that eating turnips helps people remain healthy. The news shifts the demand curve for turnips rightward. In response, new farms enter the turnip industry.

During the period in which the new farms are entering, the price of a turnip ________ and the economic profit of each existing firm ________. A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls

Question 2

If the marginal social benefit of ice cream curve shifts rightward because people now like ice cream better than before, the marginal social cost curve of ice cream will shift leftward.

Indicate whether the statement is true or false