Which of the following examples best describes the Law of Supply?
A) When the cost of production of cotton increased, all suppliers' willingness to accept decreased.
B) When the market price of pens increased, sellers started supplying more pens.
C) When the cost of production of cotton fell, the market price of cotton also fell.
D) When the market price of pens increased, sellers started supplying fewer pens.
B
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The strength of the demand for a resource depends on the following factors, except
A. supply of the resource. B. demand for the product the resource helps to produce. C. productivity of the resource. D. price of the product the resource helps to produce.
A strategy which is universally best, regardless of the strategy chosen by others, is called a
A) Nash strategy. B) dominant strategy. C) mutually interdependent strategy. D) zero-sum strategy.
The slope of a line is calculated as the ratio of the "rise" over the "run"
a. True b. False Indicate whether the statement is true or false
Under the adaptive expectations hypothesis, which of the following is the effect of a shift to a more expansionary monetary policy?
a. In the short run, the real rate of output will be unaffected, but in the long run, it will increase. b. In the short run, the real rate of output will increase, but in the long run, it will be unchanged. c. There will be a permanent increase in the real rate of output, but the inflation rate will also be a little higher. d. In the short run, the impact on the real rate of output is uncertain, but in the long run, output will increase.