As the Price of a Good Increases

question 211

Multiple Choice

As the price of a good increases:

• A) it becomes profitable to produce more of the good as long as the costs of production stay the same.
• B) it becomes profitable to produce more of the good even with higher costs of production.
• C) demand for that good will decrease.
• D) suppliers will adjust their quantity supplied only if demand for the good declines.

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Definitions:

Employer Responsibility

The legal and ethical obligations of employers towards their employees, including fair wages, safe working conditions, and compliance with labor laws.

Employee Responsibility

The duties and obligations that are expected of an employee in the performance of their job.

Payroll Items

Components of an employee's compensation, including wages, salaries, bonuses, and deductions.