In Order to Increase the Supply of a Good, Producers

question 344

Multiple Choice

In order to increase the supply of a good, producers must

• A) convince consumers to reduce the quantity demanded.
• B) see an increase in quantity supplied by competitors.
• C) reduce their per-unit costs of producing the good.
• D) cut back on labor to reduce production costs.

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Definitions:

Inelastic Portion

Part of the demand curve where the quantity demanded changes minimally in response to price changes.

Marginal Revenue

The additional income gained from selling one more unit of a product or service.

Inelastic Portion

A segment of the demand curve where consumers are relatively unresponsive to price changes, indicating a demand elasticity of less than one.

Marginal Revenue

The additional income earned from selling one more unit of a product or service.