If the Price of Leather (An Input for Leather Shoes)increases,the

question 72

True/False

If the price of leather (an input for leather shoes)increases,the equilibrium price of leather shoes will increase and the equilibrium quantity of leather shoes will decrease.

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Definitions:

Mark-up

The amount added to the cost price of goods to cover overhead and profit, often expressed as a percentage of the cost.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding cost of goods sold.

Mark-up

The difference between the cost of a good and its selling price, expressed as a percentage over the cost.

Selling Price

The price at which a product or service is offered to the buyer.