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As the Price of a Good Increases

Question 125

Multiple Choice

As the price of a good increases:


A) it becomes profitable to produce more of the good as long as the costs of production stay the same.
B) it becomes profitable to produce more of the good even with higher costs of production.
C) demand for that good will decrease.
D) suppliers will adjust their quantity supplied only if demand for the good declines.

Correct Answer:

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