If consumer desire for product X increases, all of the following will occur except
A) an increase in the proﬁts of industry X.
B) an increase in the quantity of resources employed by industry X.
C) an increase in the output of industry X.
D) a decrease in the quantity of resources employed in industry X.

Question

Quizplus · Accepted Answer

An increase in consumer desire for product X would lead to an increase in demand for the product, which would likely result in an increase in profits, an increase in the quantity of resources employed, and an increase in the output of industry X. However, it would not lead to a decrease in the quantity of resources employed by industry X as the industry would need to increase production to meet the higher demand.

If Consumer Desire for Product X Increases, All of the Following