An Increase in Quantity Supplied Can Be Caused by A(n)

question 23

Multiple Choice

An increase in quantity supplied can be caused by a(n)

• A) decrease in quantity demanded
• B) rise in resource input prices
• C) increase in price
• D) decrease in the number of firms in the market
• E) tax levied on the producer

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Definitions:

Opportunity Cost

The value of the best alternative foregone as a result of making a decision, a fundamental concept in economics that emphasizes the cost of trade-offs.

Production Possibility Frontier

A diagram that outlines every possible maximal production scenario for various items, considering a fixed amount of resources.

Trade

The exchange of goods or services between parties.

Absolute Advantage

The capacity of an entity to generate a product or service more effectively than its rivals, utilizing fewer resources.