A Decrease in Input Costs to Firms in a Market

question 48

Multiple Choice

A decrease in input costs to firms in a market will result in

• 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 a decrease in equilibrium quantity.
• D) an increase in equilibrium price and an increase in equilibrium quantity.

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Definitions:

Research Hypothesis

A research hypothesis is a specific, testable prediction about the expected outcome of a study or experiment, based on a theory or prior knowledge.

Directional

Pertaining to or indicating the direction of something, often used in the context of research to suggest a specific trend or relationship.

Research Hypothesis

A statement predicting a significant relationship or difference between two or more variables in a study.

Prediction

The act of making informed guesses about the future values or occurrences based on current data or trends.