Select the Phrase That Correctly Completes the Following Statement

question 125

Multiple Choice

Select the phrase that correctly completes the following statement."An increase in input prices caused a decrease in the supply of baseballs.As a result ________."

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

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Definitions:

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal conditions.

Marketable Securities

Financial instruments that can be easily converted into cash, such as stocks or bonds.

Financial Management

The strategic planning, organizing, directing, and controlling of financial undertakings in an organization or an institute.

Initial Capital Requirements

The amount of funds required to start a business, covering costs such as land, buildings, equipment, inventory, and working capital.