How Would a Decrease in the Cost of Production Affect

question 41

Multiple Choice

How would a decrease in the cost of production affect the market for video games?

• A) Supply would decrease, leading to an increase in price and a reduction in quantity sold.
• B) Supply would decrease, leading to a reduction in price and a reduction in quantity sold.
• C) Supply would increase, leading to an increase in price and an increase in quantity sold.
• D) Supply would increase, leading to a reduction in price and an increase in quantity sold.

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Definitions:

Debit

The left side of an account.

Cash

Money in the form of coins or banknotes, especially that held by an organization or individual.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year with its current assets.