Question

1. if american art supplies company increases the production of crayons, it may need to reduce the production of color pencils. this is called a ______

surplus
trade-off
profit
debt

Explanation:

A trade-off refers to a situation where increasing the production of one good requires reducing the production of another, due to limited resources, which matches the scenario described. Surplus means having more of a good than needed, profit is financial gain, and debt is owed money—none fit the given context.

Answer:

B. trade-off