An Increase in the Price of Input Used to Produce

question 180

Multiple Choice

An increase in the price of input used to produce a product will lead to

• A) a decrease in the demand for that product.
• B) a decrease in quantity supplied of that product
• C) a decrease in the supply of that product.
• D) an increase in the supply of that product.

---

Definitions:

Housing

The structures or accommodations in which people live, including houses, apartments, and other residential units.

Producer Price Index

An economic indicator that measures the average change over time in the selling prices received by domestic producers for their output.

Basket Of Goods

A fixed set of consumer products and services valued on a regular basis for the purpose of tracking inflation through the consumer price index (CPI).

Firms

Businesses or economic entities engaged in commercial, industrial, or professional activities.