If the Demand for Softballs Increases, One Could Expect the Demand

question 193

Multiple Choice

If the demand for softballs increases, one could expect the demand for leather to increase.This is attributable to the

• A)opportunity cost of producing softballs.
• B)marginal productivity principle.
• C)reduction in the cost of production of softballs.
• D)derived demand for an input.

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Definitions:

Technological Advance

The development and application of innovative processes, equipment, or software that enhances productivity, efficiency, or quality.

Farmers

Individuals or entities engaged in the activity of agriculture, which includes the cultivation of plants and rearing of animals for food, fiber, biofuel, medicines, and other products used to sustain and enhance human life.

Optimal Allocation

The most efficient distribution of resources within an economy to maximize the output or welfare.

MB = MC

A principle in economics indicating the optimal level of output or consumption, where the marginal benefit (MB) equals the marginal cost (MC).