In the Following Question You Are Asked to Determine, Other

question 41

Multiple Choice

In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the prices of resources used to produce X will

• A) increase S, increase P, and increase Q.
• B) increase D, increase P, and increase Q.
• C) decrease S, decrease P, and decrease Q.
• D) decrease S, increase P, and decrease Q.

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Definitions:

Public Services

Services provided by the government or public sector to citizens, often funded through taxation, including healthcare, education, and transportation.

Residential Structures

Buildings designed for people to live in, such as houses, apartments, and condominiums.

Inventories

Quantities of goods and materials held available by businesses for sale or to be used in production processes.

Tangible Capital

Physical assets like buildings, machinery, and equipment that are used in the production process of a business.