Assume product L is an input in the production of product M. Product M in turn is a substitute in production for product N. An ncrease in the price of L can be expected to: Multiple Choice increase the quantity demanded for N.
Assume product L is an input in the production of product M. Product M in turn is a substitute in production for product N. An ncrease in the price of L can be expected to: Multiple Choice increase the quantity demanded for N.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Assume product L is an input in the production of product M. Product M in turn is a substitute in production for product N. An
increase in the price of L can be expected to:
Multiple Choice
increase the quantity demanded for N.
price of L is always constant because it's an input.
have no effect on the quantity demanded for N.
decrease the quantity demanded for N.
decrease the supply of N.
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Step 1: Define Production
Production refers to a process of conversion of the input to the output. For example the making of chairs from the wood is a process of production.
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