Suppose That a Natural Disaster Substantially Increases the Cost of Producing

question 201

Multiple Choice

Suppose that a natural disaster substantially increases the cost of producing cheese.We would predict that the equilibrium quantity of cheese will ________ and the equilibrium price of cheese will ________.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decrease

---

Definitions:

Production

The process of creating or manufacturing goods and services by combining various resources and inputs.

Frankfurt School

A group of mid-20th century sociologists and philosophers who critiqued consumer culture, mass production, and the role of media in society, originating from the Institute for Social Research in Frankfurt, Germany.

Production

refers to the process of creating goods or services, involving the combination of labor, materials, and technology to meet consumer demand.

Capitalist Control

The dominion and regulatory influence exerted by capitalists, who own and control the means of production and distribution, over labor, markets, and capital.