A change in price of a good or service typically causes________________ for that specific good or service.

a.a decreased demand

b.a change along the supply curve

c.no change

d.the supply curve to shift

Why would labor be treated as a variable cost?

a.they are costs incurred in the act of producing that willdecrease with quantity produced

b.labor costs are an input cost that firms are unable to changein the short run

c.they are made before production starts and vary according tothe specific line of business

d.producing larger quantities of a good or service generallyrequires more workers