What Will Result from a Decrease in Resource Costs to Firms

question 186

Multiple Choice

What will result from a decrease in resource costs to firms in a market?

• A)a decrease in equilibrium price and an increase in equilibrium quantity
• B)a decrease in equilibrium price and a decrease in equilibrium quantity
• C)an increase in equilibrium price and no change in equilibrium quantity
• D)an increase in equilibrium price and an increase in equilibrium quantity

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Definitions:

Utmost Good Faith

A legal doctrine requiring parties in certain types of contracts, such as insurance, to act honestly and disclose all relevant information.

Transaction

The act of conducting business or exchanging goods, services, or financial assets between parties.

Power of Attorney

A legal document granting one individual the authority to act on behalf of another in legal or financial matters.