A Decrease in the Price of a Productive Resource Will

question 146

Multiple Choice

A decrease in the price of a productive resource will result in each of the following except a(n)

• A) downward shift in the average-cost curves for all products that use the resource.
• B) rightward shift in the supply of products which use the resource.
• C) rightward shift in the demand curves for all products that use the resource.
• D) increase in the quantity demanded of this productive resource.

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Definitions:

Prices

The monetary value assigned to goods or services, representing the amount a buyer pays to a seller in a market transaction.

Income

The income earned, usually periodically, from labor or investment returns.

Prices

The sum of money anticipated, needed, or provided as payment for an item.

Utility Function

A mathematical representation that ranks preferences over a set of goods and services, showing the level of satisfaction or utility a consumer receives.