Supply Decreases from All of the Following Except

question 31

Multiple Choice

Supply decreases from all of the following except

• A) a decrease in the number of businesses selling.
• B) an expectation that future prices will be higher.
• C) a rise in input prices.
• D) the introduction of a cost-saving technology.
• E) an increase in the wages paid to employees.

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Definitions:

Tax Shift

The process by which the economic burden of a tax is transferred from the entity legally responsible for it to another party, typically from sellers to buyers or vice versa.

Polluters Pay

The principle that those who produce pollution should bear the cost of managing it to prevent damage to human health or the environment.

Environmental Damage

The harm caused to the natural environment due to human activities or natural disasters.

Import Quota

A restriction set by a government on the quantity of a certain good that can be imported into the country.