A decrease in the price of a productive factor will result in each of the follow
ID: 1113351 • Letter: A
Question
A decrease in the price of a productive factor will result in each of the following except a(n):
A) rightward shift in the demand curves for all products which use the factor.
B) increase in the quantities produced and sold of all products which use the factor.
C) downward shift in the average-cost curves for all products which use the factor.
D) increase in the quantity demanded of this productive factor.
A) rightward shift in the demand curves for all products which use the factor.
B) increase in the quantities produced and sold of all products which use the factor.
C) downward shift in the average-cost curves for all products which use the factor.
D) increase in the quantity demanded of this productive factor.
Explanation / Answer
Option A)
A shift in the demand curve happens for changes in income, consumer trends, and expectations on future price and price of related goods.