What does an increase in demand for a firm’s output do?

1. A Option A: It increases the prosperity of both the firm and the factors hired by the firm
2. B Option B: It decreases the prosperity of both the firm and the factors hired by the firm
3. C Option C: It decreases the prosperity of the firm but increases the prosperity of the factors hired by the firm
4. D Option D: It increases the prosperity of the firm but decreases the prosperity of the factors hired by the firm

Answer checked 11 October 2026 · How we write and check questions