Figure 3-4 -Refer to Figure 3-4.If the Price Is $15

question 77

Multiple Choice

Figure 3-4

-Refer to Figure 3-4.If the price is $15,

• A)there would be a surplus of 300 units.
• B)there would be a shortage of 300 units.
• C)there would be a surplus of 400 units.
• D)there would be a shortage of 400 units.

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Definitions:

Increasing Cost Industry

An industry in which costs of production increase as firms enter the market, often due to limited resources or factors of production becoming more expensive.

Long-Run Supply Curve

A graphical representation that shows how the quantity supplied reacts to price changes in the long-term, accounting for all factors of production adjustments.

Increasing Cost Industry

An industry in which the costs of production increase as the industry's output expands, typically due to resource limitations.

Decreasing-Cost Industry

An industry where the average cost of production decreases as the industry's output increases, often due to economies of scale.