If the Tea Harvest Is Bad in a Particular Year

question 55

Multiple Choice

If the tea harvest is bad in a particular year, the supply of tea will

• A)decrease, its price will decrease, and the quantity demanded of coffee will increase
• B)decrease, its price will increase, and the quantity demanded of coffee will increase
• C)decrease, its price will increase, and the quantity demanded of coffee will decrease
• D)decrease, its price will decrease, and the quantity demanded of coffee will decrease
• E)increase, its price will increase, and the quantity demanded of coffee will increase

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Definitions:

Input

Resources such as labor, materials, and capital that are used in the production process to create goods or services.

Returns To Scale

The speed at which production levels rise in reaction to an equal rise in all resources, including labor and capital.

Marginal Product

The extra output or benefit received from using one additional unit of a resource.

Factor X

A term used to denote an unknown or unspecified factor in various contexts, such as productivity, growth, or other economic models.