Given that energy is an input in production, the development of a ...

[bcretired]

Given that energy is an input in production, the development of a cheaper source of energy will result in:
 a. a lower price level and a lower amount of production.
  b. a higher price level and a higher amount of production.
  c. a lower amount of production at every price level.
  d. a higher amount of production at every price level.
  e. a lower profit at every price level.

Question 2

Which of the following best illustrates the fallacy of composition?
 a. If the price of a product rises, the quantity supplied will decline.
 b. The average wage rate tends to increase at approximately the same rate as inflation; hence, wage increases must cause inflation.
  c. Resources are scarce; therefore, there is no such thing as a free lunch.
 d. If I talk loudly at a party, I have a better chance of being heard by my listeners. If everyone at the party talks loudly, everyone can be heard more clearly.

[randomguy133]

Answer to Question 1

d

Answer to Question 2

d

[bcretired]

TYSM

[robbielu01]

Excellent