If an increase occurs in the demand for product X, we would expect all of the following to occur except:
A)an increase in the profits of industry X.
B)an increase in the demand for resources employed by industry X.
C)an increase in the output of industry X.
D)a decrease in the prices of resources employed in industry X.

Question

Quizplus · Accepted Answer

If there is an increase in the demand for product X, industry X may increase its profits, output, and demand for resources. However, an increase in demand for resources may lead to an increase in the prices of those resources, not a decrease as stated in option D.

If an Increase Occurs in the Demand for Product X