Q
An increase in productivity should ?
-
A
A. Lead to a contraction of supply
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B
B. Lead to an expansion of supply
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C
C. Lead to a shift in supply outwards (i.e more supplied at each and every price)
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D
D. Lead to a higher equilibrium and lower equilibrium quantity
Correct Answer:
C. C. Lead to a shift in supply outwards (i.e more supplied at each and every price)
