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What Will an Increase in the Demand for a Product

Question 14

Multiple Choice

What will an increase in the demand for a product cause output to do?


A) Decline, while the demand for the resources used to produce the product will remain constant.
B) Increase, and the demand for the resources used to produce the product will rise.
C) Increase, and the price of resources used to produce the product will increase if their supply is perfectly elastic.
D) Increase, and the demand for the resources used to produce the product will fall.

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