An automobile manufacturer uses land, labor, capital, and entrepreneurial ability to produce cars and trucks. If the price of trucks increases, the automobile manufacturer would not _____.
a. pay a lower wage rate to labor
b. increase truck production
c. hire more workers
d. increase capital used in production
e. increase land used in production
Question 2
Which of the following is true?
a. Sellers are willing to supply more of a good or service at every price after costs have increased.
b. A fall in the price of a product leads to an increase in the profits earned by sellers.
c. A fall in the cost of production leads to a downward movement along the supply curve of a product.
d. Sellers are willing to supply more of a good or service at every price after costs have decreased.
e. An increase in the price of a product leads to a fall in the profits earned by sellers.
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