If the Demand for a Product Increases and the Supply

question 73

True/False

If the demand for a product increases and the supply of the same product decreases,the equilibrium price will increase.

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Definitions:

Domestic Surplus

The extra quantity of a good that producers are willing to supply over what is demanded by domestic consumers, often measured when analyzing the impact of international trade.

Tariffs

Taxes on imported goods, implemented by a government to protect domestic industries from foreign competition or to generate revenue.

Textiles

Materials made from fibers, filaments, threads, or yarns, suitable for use in the production of fabrics and other goods.

Price Of Labor

Refers to the wage rate, or the amount of compensation workers receive in exchange for their labor.