The Price of Salsa Rises

question 221

Multiple Choice

The price of salsa rises.How does the increase in the price of salsa affect the supply of salsa?

• A) The supply of salsa increases.
• B) The supply of salsa decreases.
• C) There is no change to either the supply of salsa or the quantity of salsa supplied.
• D) There is no change to the supply of salsa, but the quantity of salsa supplied increases.
• E) There is no change to the supply of salsa, but the quantity of salsa supplied decreases.

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Definitions:

Technological Advance

Progress in technology and innovation that leads to new methods, products, or improvements in production, efficiency, and development.

Preferred Mix

The optimal combination of goods and services chosen by an individual or firm based on preferences, income, and prices.

Productive Efficiency

Achieved when goods or services are produced at the lowest possible cost and utilizing resources in the best way possible.

Average Total Cost

The total cost of production divided by the quantity of output produced, showing the average cost per unit.