The Following Table Gives Information About the Relationship Between Input

question 201

Multiple Choice

The following table gives information about the relationship between input quantities and real domestic output in a hypothetical economy:

-Suppose that the price of each input increased from $5 to $8.The per unit cost of production in the above economy would:

• A) rise by $1.50 and the aggregate supply curve would shift to the right.
• B) rise by 60 percent and the aggregate supply curve would shift to the left.
• C) rise by 60 percent and the aggregate demand curve would shift to the left.
• D) fall by $1.50 and the aggregate demand curve would shift to the right.

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Definitions:

Cash Flow

Cash flow refers to the net amount of cash and cash-equivalents being transferred into and out of a business.

Question Marks

Products or businesses that operate in high-growth markets but have low market share, often requiring significant investment to improve their position.

Market Share

The segment of a market held by a certain company or product.

Market Growth

An increase in the demand for a particular product or service over time, which can be influenced by factors like changes in consumer preference, population growth, and technological advancement.