Which of the Following Would Be Expected to Cause the Quantity

question 62

Multiple Choice

Which of the following would be expected to cause the quantity of wool supplied to decrease?

• A) A decrease in the price of wool
• B) A decrease in the number of wool producers
• C) An increase in the cost of raising sheep
• D) An increase in wages paid to workers in the wool industry

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Definitions:

Allocation

The process of distributing resources, goods, or services in a particular way or to particular recipients.

Scarce Resources

Resources that are limited in supply and cannot fulfill all the uses and demands placed on them.

Virtually Unlimited

A term used to describe a resource or supply that is so abundant it appears to be almost without limit.

Scarcity and Choice

Refers to the fundamental economic problem of having unlimited human wants in a world of limited resources, leading to the necessity of making choices on how to allocate resources efficiently.