A Firm's Short- Run Demand Function for Some Input Will

question 81

Multiple Choice

A firm's short- run demand function for some input will shift up if:

• A)the competitive equilibrium price of the input decreases.
• B)a new process makes the input more productive.
• C)the prices of the fixed inputs decrease.
• D)the price of the firm's product increases.

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Definitions:

Oral Express Warranties

Verbal promises made by a seller to a buyer about the nature or quality of the product being sold.

Sales Agreement

A contract between a buyer and seller outlining the terms and conditions of a sale of goods or services.

Liability

The state of being legally responsible for something, often referring to financial obligations incurred through actions or by contract.

Lemon-Law

Legislation that offers remedies to consumers for products, especially vehicles, that fail to meet standards of quality and performance after multiple repair attempts.