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Discuss the Correct and Incorrect Economic Analysis in the Following

question 129

Essay

Discuss the correct and incorrect economic analysis in the following statement.
"If good weather in Hawaii creates a bumper crop of pineapples, the supply of pineapples will increase.This will result in a price decrease, which will then cause the supply of pineapples to decrease."


Definitions:

Inputs

Inputs are the resources used in the production process to produce goods or services, including labor, capital, materials, and energy.

Capital Intensive

A description of industries or businesses that require large investments in capital assets to produce goods or services.

Variable Cost

Costs that change in proportion to the level of production or activity within a company.

Long Run

A time period in economics during which all inputs or factors of production can be varied, and no costs are fixed.

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