A decrease in the demand for a product will cause output of that product to
a. increase and the demand for and prices of the resources used to produce the product to rise.
b. decrease and both the demand for and prices of the resources used to produce the product to fall.
c. decline; the demand for the resources used to produce the product will remain constant.
d. increase; the price of resources used to produce the product will rise if their supply is elastic but fall if supply is inelastic.
B
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When consumers act as price-takers, we say that they behave
A) cooperatively. B) competitively. C) monopsonistically. D) irrationally.
Accounting profits are typically
A) greater than economic profits because accounting profits do not include explicit costs. B) greater than economic profits because accounting profits do not include implicit costs. C) smaller than economic profits because accounting profits do not include explicit costs. D) equal to economic profits in the long run.