Reference no: EM132162132

Suppose the market for a good is at equilibrium, so that at the current price supply equals demand. What will happen after a good substitute for the good in question is introduced?

1. Consumers will buy more of all goods
2. Suppliers will go under
3. The demand curve will shift upwards, leading to an increase in the price for the good in question
4. The demand curve will shift to the left, leading to a fall in both the price of the good and the quantity bought and sold

What is a labor-intensive production technique?

1. A way of predicting output that pushes workers very hard
2. A way of producing output that uses relatively high quantities of labor
3. A way to produce output by using many machines
4. A way to increase productivity

Pareto efficiency is present when

1. Everybody is as well off as everybody else
2. Goods are being produced using the lowest amount of labor
3. General economic well-being is improving
4. We cannot make an individual better off without making somebody else worse off