If the Number of Firms Producing Mouthwash Increases and Consumer

question 27

True/False

If the number of firms producing mouthwash increases and consumer preference for mouthwash increases, the equilibrium price of mouthwash will definitely increase.

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Definitions:

Closed Economy

An economic system that does not engage in international trade with other countries and relies solely on its own resources and internal market.

Budget Surplus

The condition where a government's revenues exceed its expenditures over a specific period of time.

Public Saving

The difference between government receipts and government spending, representing the amount the government either saves or borrows.

Positive

In economics, referring to statements or analyses that are fact-based and describe the world as it is, rather than how it should be.