Suppose That the Price of Lettuce Used to Produce Tacos

question 206

Multiple Choice

Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________.

• A) rises; increases
• B) rises; decreases
• C) falls; increases
• D) falls; decreases
• E) does not change; decreases

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Definitions:

Empirical Studies

Research or studies based on actual and observable evidence, typically involving systematic observation or experimentation.

Unionized Firms

Companies or organizations where the workforce is represented by a union, which negotiates wages, working conditions, and other employment terms.

Productivity

A measure of the efficiency of production often quantified as the ratio of outputs produced to inputs used over a specified period.

Firm Profits

The net income a company retains after deducting all costs, taxes, and expenses from its total revenue.