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:

Producer

An individual, company, or entity that creates goods or provides services.

Total Cost

The entirety of expenses, fixed and variable, involved in the production of services or goods.

Market Price

The existing value at which an asset or service may be sold or acquired in a trading environment.

Sellers

Individuals or entities that offer goods or services for sale.