Which of the Following Would Best Explain a Decrease in the Supply

question 45

Multiple Choice

Which of the following would best explain a decrease in the supply of squash?

• A) An increase in the price of other vegetables
• B) An increase in the price of squash
• C) A decrease in the price of squash
• D) A decrease in the cost of growing squash

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Definitions:

Consumption

The action or process of using goods and services for personal, household, or organizational needs.

Marginal Propensity

The proportion of an additional unit of income that is used for consumption; more specifically referred to as the marginal propensity to consume.

Net Wealth

The value of assets minus liabilities.

Consumption Spending

The total value of all goods and services consumed by households within a certain period.