If input prices rose and production technology improved at the same time, as a result: larger quantities to be exchanged.
A)prices would rise.
B)prices would fall.
C)larger quantities to be exchanged.
D)we would not know which direction either prices or quantities exchanged would be altered without more information.

Question

If input prices rose and production technology improved at the same time, as a result: larger quantities to be exchanged.
A)​prices would rise.
B)​prices would fall.
C)​larger quantities to be exchanged.
D)​we would not know which direction either prices or quantities exchanged would be altered without more information.

Quizplus · Accepted Answer

The simultaneous increase in input prices and improvement in production technology creates opposing effects on production costs and efficiency, making it unclear how prices or quantities exchanged would be affected without additional information.

If Input Prices Rose and Production Technology Improved at the Same