An increase in the demand for a product and a reduction in its costs of production would:
A. Decrease the profits of producers
B. Encourage firms to leave an industry
C. Encourage firms to enter an industry
D. Cause a shortage of the product
Answer: C
Economics
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Which of the following is not an example of a transfer payment?
A. social security. B. unemployment benefits. C. workman's compensation. D. sales tax.
Economics
Which situation below would represent a surplus in the fertilizer market?
A. quantity demanded is 1.2 million; quantity supplied is 1.1 million. B. market price $2.00 per bag; equilibrium price $2.25 per bag. C. market price $2.50 per bag; equilibrium price $2.00. D. quantity supplied this year is 25% greater than quantity supplied last year.
Economics