An Increase in the Price of Inputs Used to Produce

question 139

Multiple Choice

An increase in the price of inputs used to produce good A will:

• A)​increase supply, increase price and increase the quantity exchanged.
• B)​increase demand, increase price and increase the quantity exchanged.
• C)​decrease supply, increase price and decrease the quantity exchanged.
• D)​decrease supply, decrease price and decrease the quantity exchanged.

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Definitions:

Contract

A legally binding agreement between two or more parties that outlines obligations and rights.

Distribution

The process by which goods or services are made available to consumers through a supply chain.

Export Management Company

A business that acts as an intermediary between domestic manufacturers and foreign buyers, managing the export process.

Product Labeling

The practice of attaching information to products, indicating details such as ingredients, manufacturer, and usage instructions.