If an Increase Occurs in the Demand for the Output

question 77

Multiple Choice

If an increase occurs in the demand for the output of industry A,we would expect all of the following to happen except:

• A)an increase in the profits of industry A.
• B)a decrease in prices of inputs used in the production of A.
• C)an increase in the output of industry A.
• D)an increase in the demand for inputs used in the production of A.

---

Definitions:

Limitation of Damages

A legal principle that restricts the amount of compensation an injured party can receive.

Lessee

A lessee is a person or entity who rents land, a building, or an apartment under a lease agreement.

Unconscionable

Refers to a contract or deal that is so unjust or overwhelmingly one-sided in favor of one party that it is deemed unfair or unethical.

Breach of Contract

Failure by one or more parties to fulfill the terms and conditions of a contract, which could lead to legal action for enforcement or damages.