An Increase in the Supply of Oranges Will Cause the Equilibrium

question 74

True/False

An increase in the supply of oranges will cause the equilibrium price of oranges to rise, ceteris paribus.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service.

Relevant Range

The range of activity or volume in which the assumptions about fixed costs and variable costs are valid.

Variable Cost

Costs that fluctuate with the level of output, such as materials and labor directly involved in production.

Cost Driver

An element that leads to a variation in the expense associated with an action.