A company decides to eliminate the pollution it was causing. The result was a “socially efficient level of production, but the cost of production increased. What happens to the equilibrium price and quantity demanded? The price decreases and the quantity demanded decreases The price increases and the quantity demanded increases The price increases and the quantity demanded decreases The price decreases and the quantity demanded decreases
A company decides to eliminate the pollution it was causing. The result was a “socially efficient level of production, but the cost of production increased. What happens to the equilibrium price and quantity demanded? The price decreases and the quantity demanded decreases The price increases and the quantity demanded increases The price increases and the quantity demanded decreases The price decreases and the quantity demanded decreases
Chapter4: Markets In Action
Section: Chapter Questions
Problem 18SQ
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Question
- A company decides to eliminate the pollution it was causing. The result was a “socially efficient level of production, but the cost of production increased. What happens to the
equilibrium price and quantity demanded?
- The price decreases and the quantity demanded decreases
- The price increases and the quantity demanded increases
- The price increases and the quantity demanded decreases
- The price decreases and the quantity demanded decreases
Expert Solution
Introduction:
Factors of production are the components used for the process of manufacturing the goods and services to sell it in the market at a given price during a given period of time.
The factors of production includes land, labor, raw materials, capital, semi finished goods, machines etc.
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ISBN:
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Author:
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Publisher:
Cengage Learning