An increase in the demand for peanut butter could be caused by a(n)

a. decrease in consumer income
b. increase in the supply of peanut butter
c. decrease in the price of bread
d. drought in Georgia that destroyed 30 percent of the peanut crop
e. decrease in the price of bologna

Suppose the production function in an economy is y = k0.5l0.5, where k is the amount of capital and l is the amount of labor. the economy begins with 64 units of capital and 16 units of labor. use a calculator and equations in the chapter to find a numerical answer to each of the following questions. what are the wage and the rental price of capital? the wage is equal to unit(s) of output and the rental price of capital is equal to unit(s) of output.