When Input Prices Rise and Increase the Cost of Production

question 89

Multiple Choice

When input prices rise and increase the cost of production, the

• A) quantity supplied increases.
• B) demand curve shifts rightward.
• C) supply curve shifts rightward.
• D) supply curve shifts leftward.
• E) quantity supplied decreases.

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Definitions:

Illegal Drugs

Substances whose production, sale, or possession are prohibited by law.

Price Index

A statistical measure that shows changes in the cost of acquiring a specific basket of goods and services over time.

Underground Economy

Economic activity that occurs outside of government regulation and taxation, including both illegal activities and unreported income from legal sources.

Gross Domestic Product

The collective market or monetary value of all final products and services created within a nation's territory in a specific duration.