Author Question: Milk can be used to produce cheese or butter. If the price of a pound of butter rises, what happens ... (Read 93 times)

kwoodring · **on:** Jun 30, 2018

Milk can be used to produce cheese or butter. If the price of a pound of butter rises, what happens to the supply of cheese?

A) The supply of cheese decreases.
B) The supply of cheese increases.
C) The supply of cheese stays the same and there is a decrease in the quantity supplied of cheese.
D) The supply of cheese stays the same and there is no change in the quantity supplied of cheese.
E) The supply of cheese could increase, decrease, or stay the same depending on what happens to the supply of butter.

Question 2

According to this Application, clear property rights

A) hinder economic growth in developing nations.
B) have no impact on the economic growth of developed nations.
C) are important for economic growth in developing and developed nations.
D) are important for economic growth in developed nations, but not in developing nations.