Over a Period of Time, the Equilibrium Price of a Good

question 351

Multiple Choice

Over a period of time, the equilibrium price of a good increases and the quantity decreases. All of the following could account for this situation, except

• A) an increase in the costs of production.
• B) the removal of a subsidy on the good or service.
• C) the imposition of a sales tax on the good or service.
• D) a decrease in the price of an alternative good or service that producers could also produce.

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Definitions:

Network Complexity

The intricacy and interconnectedness of components within a network, reflecting its diversity, number of nodes, connections, and the degree of their interactions.

Outsourced Activities

Tasks or operations handed over to external entities or companies to capitalize on efficiencies or specialized skills not available internally.

Lack of Loyalty

Refers to the absence of allegiance, commitment, or fidelity in relationships, such as between an employee and employer.

Virtual Organization

A company that operates and collaborates through electronic means, often without a physical presence.