Suppose the Input Costs Associated with Manufacturing Hair Replacement Treatments

question 155

Multiple Choice

Suppose the input costs associated with manufacturing hair replacement treatments decrease over time.This would lead to a(n) :

• A)increase in the supply of such treatments,lower prices,and an increase in the equilibrium quantity.
• B)decrease in quantity supplied and lower prices.
• C)increase in demand and higher prices.
• D)decrease in the supply of such treatments,higher prices,and a decrease in the equilibrium quantity.

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Definitions:

Credit Policy

The guidelines a company follows to determine how much credit to extend to customers.

Variable Costs

Costs that change when the quantity of output changes.

International Commerce

refers to the trade of goods and services across international boundaries, including the exchange of commodities, capital, and information.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.