Suppose That at Prices of $1, $2, $3, $4, and $5

question 233

Multiple Choice

Suppose that at prices of $1, $2, $3, $4, and $5 for product Z, the corresponding quantities supplied are 3, 4, 5, 6, and 7 units, respectively. Which of the following would increase the quantities supplied
Of Z to, say, 6, 8, 10, 12, and 14 units at these prices?

• A) improved technology for producing Z
• B) an increase in the prices of the resources used to make Z
• C) an increase in the excise tax on product Z
• D) increases in the incomes of the buyers of Z

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Definitions:

Budget Deficit

The situation where a government's expenditures surpass its revenue over a specific period, leading to borrowing or debt accumulation.

Government Purchases

Expenditures by government entities on goods and services that directly absorb resources and are part of the nation's gross domestic product (GDP).

Discretionary Fiscal Policy

Government policy involving deliberate measures, such as taxation and spending, to influence economic activity.

Economic Forecasts

Predictions about future economic activity based on current and historical data analysis, including trends in GDP, inflation, and employment.