When firms experience an increase in the cost of producing their goods and services they will want to charge ______ prices. As a result, buyers will experience a ________ in their purchasing power and this will cause production of goods and services to ________. Group of answer choices higher: decrease : decrease lower : increase : increase higher : increase : increase higher : decrease : increase
When firms experience an increase in the cost of producing their goods and services they will want to charge ______
As a result, buyers will experience a ________ in their
Group of answer choices
A production process is influenced by a number of factors such as the price of resources, capital, and labor that are used to produce goods and services, and the level of technology available in the economy. The supply and demand for factor inputs determine their prices. Since factor inputs are used in the production of final goods and services meant for consumption, their demand is derived from the demand for commodities they produce. The demand for factor inputs is, hence, known as derived demand.
Step by step
Solved in 2 steps
