If a Firm Has an Incentive to Increase Supply Now

question 139

Multiple Choice

If a firm has an incentive to increase supply now and decrease supply in the future, the firm expects that the:

• A)price of its product will be lower in the future than it is today.
• B)demand for the product will be lower in the future than it is today.
• C)price of inputs will be lower in the future than they are today.
• D)price of its product will be higher in the future than it is today.

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Definitions:

Health Care

The organized provision of medical services to individuals or communities to maintain or improve health.

Life Expectancy

The average period that a person may expect to live, based on the statistical analysis of the age-specific death rates for a given population.

Smallpox Inoculation

An early method of immunization against smallpox, involving the introduction of material from smallpox sores into the skin to induce immunity.

Social Conditions

The environmental, cultural and economic factors that influence the lives and opportunities of those within a society.