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    Microeconomics Study Set 45
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    Exam 2: The Market System and the Circular Flow
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    An Increase in the Demand for a Product and a Reduction
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An Increase in the Demand for a Product and a Reduction

Question 48

Question 48

Multiple Choice

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.

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