If the Trade Union in a Factory That Produces Good

question 55

Multiple Choice

If the trade union in a factory that produces good X goes on an indefinite strike, which of the following is likely to happen?

• A) The supply curve for good X will shift to the right.
• B) If demand remains unchanged, the equilibrium quantity of good X will increase.
• C) If demand remains unchanged, the equilibrium price of good X will increase.
• D) The demand curve for good X will shift to the right.

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Definitions:

Pretax Profit

The profit earned by a company before any tax is deducted, showing the company's earnings directly from its operations.

Break-Even Point

The financial state where total costs equal total revenues, resulting in no net loss or gain for the business.

Variable Costs

Spendings that move in tandem with the level of output or number of sales.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are deducted.