The Price of Chocolate Chips Has Increased

question 102

Multiple Choice

The price of chocolate chips has increased.For the producers of chocolate chip cookies,this means:

• A) they can supply more at each price because some of the competition will drop out.
• B) they can supply less at each price because the price of a main input has gone up.
• C) they can supply more at each price because the price of a main input has gone up.
• D) they can supply more at each price because of more competition.

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Definitions:

Disposable Income

The financial resources meant for household spending and saving after settling income taxes.

Saving

The act of setting aside a portion of current income for future use, either by holding the funds in cash or investing them.

Disposable Income

Spendable and savable funds available to households after the deduction of income taxes.

Consumption

The act of using goods and services to satisfy needs and desires, often considered a primary component of an economy's activity.