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While reading the business section today, you came across the following quote about Printco Inc., a major supplier of newsprint to the publishing industry: Printco
While reading the business section today, you came across the following quote about Printco Inc., a major supplier of newsprint to the publishing industry: "Printco Inc. faced dramatically higher newsprint costs. These costs accounted for 75% of the company's total production costs. As a result, the company expects revenue for the year to fall below expectations." Which of the following statements describes the MOST likely outcome of the increase in Printco's newsprint costs? a) The demand for newsprint will increase. b) The supply curve will remain unchanged because the newsprint price increase can be passed onto suppliers. c) Printco will experience a positive shift in the demand. d) Printco will experience a negative shift in supply
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