This topic contains a solution. Click here to go to the answer

Author Question: Other things constant, a decrease in the price of fertilizer will: a. increase the supply of wheat. ... (Read 558 times)

Jipu 123

  • Hero Member
  • *****
  • Posts: 569
Other things constant, a decrease in the price of fertilizer will:
 a. increase the supply of wheat.
 b. decrease the supply of wheat.
  c. increase the demand for wheat.
  d. decrease the demand for wheat.

Question 2

Explain how changes in the stock of capital affect aggregate supply.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

huda

  • Sr. Member
  • ****
  • Posts: 304
Answer to Question 1

a

Answer to Question 2

Changes in the stock of capital will alter the amount of goods and services the economy can produce. Investing in capital improves the quantity and quality of the capital stock, which lowers the cost of production in the short run. This change in turn shifts the short-run aggregate supply curve rightward and firms will supply more output at every price level. It also allows output to be permanently greater than before, shifting the long-run aggregate supply curve rightward, ceteris paribus.




Jipu 123

  • Member
  • Posts: 569
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


kalskdjl1212

  • Member
  • Posts: 353
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

For a complete list of videos, visit our video library