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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 87

Question 87

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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