When the Demand for Compact Disks Increases, Producers Will Be

Multiple Choice

When the demand for compact disks increases, producers will be motivated to expand production because the:

A) demand price for compact disks will exceed the opportunity cost of producing an additional compact disk.
B) the demand price for compact disks will be less than the opportunity cost of producing an additional compact disk.
C) increase in demand creates an excess supply of compact disks.
D) increase in demand will increase cost, thereby forcing producers to expand output in order to maintain profits.