A Decrease in Demand and an Increase in Supply Are

question 13

Multiple Choice

A decrease in demand and an increase in supply are indicated by

• A)​Upward shifts in both curves.
• B)​Downward shifts in both curves.
• C)​Rightward shifts in both curves.
• D)​Leftward shifts in both curves.

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Definitions:

Output

Output refers to the quantity of goods or services produced by a firm, industry, or economy within a certain period.

Increasing Returns

An economic principle where a proportionate increase in inputs leads to a greater proportionate increase in outputs, typically seen in production processes.

Constant Returns

A situation in production where increasing the inputs by a certain proportion results in an increase in output by the same proportion.

Input Prices

The costs associated with the purchase of the materials, labor, and other inputs required for the production of goods or services.