Select the Phrase That Correctly Completes the Following Statement

question 73

Multiple Choice

Select the phrase that correctly completes the following statement."A decrease in the number of manufacturers caused a decrease in the supply of sailboats.As a result,

• A)the price of sailboats increased and the demand for sailboats decreased."
• B)the equilibrium quantity of sailboats increased."
• C)the price of sailboats increased and the quantity demanded of sailboats decreased."
• D)the price of sailboats increased.The higher price caused the supply of sailboats to increase."

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Definitions:

Forgone Entrepreneurial Income

The potential income an entrepreneur misses out on when choosing to start their own business rather than working for wages.

Production Costs

Expenses related to the manufacture of goods or delivery of services, including materials, labor, and overhead.

Average Product

The output per unit of input, calculated by dividing total product by the quantity of input.

Labor

The physical and mental effort used in the production of goods and services.