An Economy Is Employing 2 Units of Capital, 5 Units

question 19

Multiple Choice

An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640 units.Each unit of capital costs $10; each unit of raw materials, $4; and each unit of labor, $3.If the per-unit price of raw materials rises from $4 to $8 and all else remains constant, the aggregate

• A)supply curve would shift to the left.
• B)supply curve would shift to the right.
• C)demand curve would shift to the left.
• D)demand curve would shift to the right.

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Definitions:

Needlessly Complex

Describing a process, system, or item that is made more complicated than necessary, often leading to confusion or inefficiency.

Complex Phenomena

Events or situations that are multifaceted and difficult to understand due to the involvement of multiple interconnected factors.

Natural Scientists

Professionals who study the natural world using empirical evidence and scientific methods.

Gravity

A natural force exerted by a mass that attracts other masses towards its center.