If a Market Reflects a Shortage and Prices Are Allowed

question 130

Multiple Choice

If a market reflects a shortage and prices are allowed to move:

• A) supply will increase.
• B) demand will decrease.
• C) price will decrease.
• D) price will increase.

Understand the distinction between economic profit and accounting profit.

Analyze production technologies using inputs of capital and labor.

Identify capital-intensive and labor-intensive technologies.

Calculate the optimal method of production based on the cost of capital and labor.

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Definitions:

Young-Helmholtz Theory

A theory of color vision that proposes the presence of three types of color receptors in the eye, each sensitive to red, green, or blue light.

Red-Sensitive

Red-sensitive refers to the capacity of certain cells in the retina, called cones, that are especially responsive to red light, playing a key role in color vision.

Green-Sensitive

Pertains to the ability of certain sensors or cells, especially in the eye, to primarily respond to green light.

Parallel Processing

The ability of the brain to simultaneously process incoming stimuli of differing quality, a fundamental mechanism behind many aspects of perception.