The Demand for a Resource Will Increase If the

question 103

Multiple Choice

The demand for a resource will increase if the

• A) price of the resource decreases.
• B) supply of the resource decreases.
• C) price of the product requiring this resource increases.
• D) price of the product requiring this resource decreases.

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Definitions:

Output

The cumulative production of goods and services by an economy over a given time frame.

External Cost

Costs of a transaction or activity that affect people other than those directly involved in the transaction, often not reflected in the market prices.

Social Cost

The total cost to society of an action, including both private costs borne by individuals and external costs absorbed by others.

Gallon

A unit of volume for liquid measure equal to four quarts, used in the United States and the United Kingdom.