A market survey conducted by an electronics manufacturer reported a year on year growth in the sale of television sets, along with an increase in the selling price. Which of the following could be a likely cause for this situation?
a. A decrease in supply
b. An increase in demand
c. A decrease in demand
d. An exception to the law of demand
e. An increase in supply
Question 2
The production possibilities curve is:
a. a graph that shows the combinations of output which are most profitable to produce.
b. a graph that shows the various combinations of output it is possible for an economy to produce given its available resources and technology.
c. a graph that shows the various combinations of resources that can be used to produce a given level of output.
d. a curve that shows the quantity of output that will be offered for sale at various prices.
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