When resources move from a low-profit industry into a high-profit industry,:
A) supply in the low-profit industry decreases, raising the market price.
B) demand in the low-profit industry decreases, lowering the market price.
C) supply in the high-profit industry decreases, raising the market price.
D) supply in the high-profit industry increases, raising the market price.

Question

Quizplus · Accepted Answer

When resources move from a low-profit industry to a high-profit industry, the supply in the low-profit industry decreases, which can lead to an increase in the market price due to reduced availability of goods or services in that industry.

When Resources Move from a Low-Profit Industry into a High-Profit