If the Demand for Mushrooms Increases While the Supply Remains

question 137

Multiple Choice

If the demand for mushrooms increases while the supply remains unchanged,this will result in

• A)a shortage of mushrooms as the market price remains unchanged.
• B)an increase in the quantity of mushrooms sold and an increase in their price.
• C)an increase in the quantity of mushrooms sold but no change in price.
• D)a decrease in the quantity of mushrooms sold and an increase in their price.

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Definitions:

Production Line

A sequence of operations that assembles or manufactures products in a factory.

Expansion Option

An option within a project that allows for expansion, scaling up production or operations, if the initial phase is successful, often evaluated in capital budgeting.

Initial Cost

This is the amount required to start a project or investment, often encompassing purchase price, setup fees, and other initial expenses.

Technology Update

The process of implementing the latest technological advancements and improvements within a company or system to increase efficiency and competitiveness.