When OPEC raised the price of oil, it created a:

An increase in supply will cause a(n)

a. increase in demand b. decrease in demand c. increase in quantity demanded d. decrease in equilibrium quantity demanded e. increase in equilibrium price

Which of the following best describes the law of diminishing returns?

a. The principle that beyond some point the marginal product decreases as additional units of a variable factor (ex: labor) are added to a fixed factor (ex: a restaurant kitchen). b. The concept that as a person consumes more and more of a good, such as pizza slices, that the marginal utility from each additional slice will decline. c. The empirical fact that the profitability of firms declines in the long run due to increasing competition. d. None of the above.