When Production Costs Increase and Producers Raise Output Prices,the Result

question 93

Multiple Choice

When production costs increase and producers raise output prices,the result is

• A)The price effect.
• B)Unemployment.
• C)Cost-push inflation.
• D)Demand-pull inflation.

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Definitions:

Quantity

The amount or number of a material or immaterial thing not requiring a unit of measurement to be specified or identified.

Supply

The total amount of a specific good or service available for purchase at any given time.

Demand

The desire of purchasers to buy a certain good or service, combined with their ability and willingness to pay for it.

Price

The monetary value assigned to a product or service for purchase.