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What Is the Best Inference About the Impact of a Decrease

Question 40

Multiple Choice

What is the best inference about the impact of a decrease in transportation costs?


A) The demand and supply curves will shift out, which will increase quantities of goods.
B) The supply curve will shift out, which will lead to lower prices to consumers.
C) Farmers will earn a smaller share of the selling price of their crops.
D) The demand curve will shift out, which will lead to higher prices and quantities of goods.

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