An Increase in the Productivity of Producing Jeans Results in

question 5

Multiple Choice

An increase in the productivity of producing jeans results in

• A) the quantity of jeans supplied increasing.
• B) the supply of jeans increasing.
• C) buyers demanding more jeans because they are now more efficiently produced.
• D) buyers demanding fewer jeans because their price will fall, which signals lower quality.
• E) some change, but the impact on the supply of jeans is impossible to predict.

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Definitions:

Licensing Statute

Legislation that specifies the requirements and conditions for obtaining a professional or business license to legally operate.

Illegal And Unenforceable

Describes contracts that cannot be legally upheld or enforced due to the inclusion of illegal acts or elements.

Usury

The lending of money at an exorbitant or unlawful rate of interest.

Adhesion Contract

A contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis. Such contracts are legal but are sometimes rescinded on the grounds of unconscionability and the absence of one party’s free will to enter a contract.