Table 4-7 -Refer to Table 4-7.If the Price Were $8,a

question 101

Multiple Choice

Table 4-7

-Refer to Table 4-7.If the price were $8,a

• A) shortage of 20 units would exist, and price would tend to rise.
• B) surplus of 25 units would exist, and price would tend to fall.
• C) shortage of 25 units would exist, and price would tend to rise.
• D) surplus of 45 units would exist, and price would tend to fall.

---

Definitions:

Output Increases

A situation where the production capacity of an economy grows, leading to more goods and services being available.

Productivity Rises

An increase in the efficiency of production, often leading to more output with the same or fewer inputs.

Relative Prices

The price of a commodity or service in comparison to another, indicating its opportunity cost and economic choice.

Substitutable Resources

Resources that can replace each other in production or consumption, leading to flexibility and alternatives for consumers and producers.