Question

Choose the statements that CORRECTLY describe the result a price change will have on the supply of or the demand for a product. Increases in government regulations will cause producers to charge less for their goods. When productive resources decrease in price, producers will make more of a product. A decrease in the price of a complementary good will cause an increase in the price for the other product. A price set above equilibrium price is called a Price Floor. Increases in the number of sellers of a product will cause a decrease in the equilibrium price of that product. A Price Ceiling is the maximum amount of a product a person is willing to pay for a good or service. Submit Answers

Answer 1

Answer:

The following statements are correct:

When productive resources decrease in price, producers will make more of a product.

Productive resources are also known as the factors of production. The factors of production are four: labor, land, capital, and entrepreneurship. When the factors of production are cheaper, firms can buy more factors, and thus, increase output.

Increases in the number of sellers of a product will cause a decrease in the equilibrium price of that product.

If supply increases, and demand stays constant, more goods will be offered to the same amount of customers. This will cause the equilibrium price of those goods to fall.