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 559 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
Wow, this really help


okolip

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Excellent

 

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

For a complete list of videos, visit our video library