Suppose Product X Is an Input in the Production of Product

question 98

Multiple Choice

Suppose product X is an input in the production of product Y. Product Y in turn is a substitute for product Z. An increase in the price of X can be expected to

• A) decrease the demand for Z.
• B) increase the demand for Z.
• C) have no effect on the demand for Z.
• D) decrease the supply of Z.

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Definitions:

Exclusively

Solely, without including others; limited to a particular individual or group.

Professional Entertainer

An individual skilled in performing arts, such as acting, singing, or dancing, who earns their living through their artistic talents.

Onerous Exemption Clause

A term in a contract that imposes heavy obligations on one party, which may be difficult to fulfill.

Aggrieved Purchaser

A buyer who has suffered because of a breach of contract or misrepresentation during a purchase.