Which of the following represents the law of supply?
A. An increase in the price of a good causes an increase in the quantity supplied of that good.
B. An increase in the price of a good causes a rightward shift of the supply curve for that good.
C. An increase in the price of a good causes an increase in the supply of that good.
D. All of these
Answer: A
You might also like to view...
Critics of price regulation suggest that some firms
A. will lack the incentive to run their business efficiently. B. will underestimate their costs and lead to bankruptcy. C. will sue the federal government for damages. D. will set their price equal to marginal cost instead of average cost.
Political instability is an obstacle to development in:
A. both market and socialist economies. B. neither market nor socialist economies. C. market economies. D. socialist economies.
The foreign trade effect is when the US price level __________ relative to foreign price levels and the quantity of US goods demanded as net exports decreases.
Fill in the blank(s) with the appropriate word(s).
Recall the Application about the price and supply of blueberries to answer the following question(s).According to the Application, as the quantity of blueberries demanded increases, prices ________ in the short run and ________ as supply catches up with demand.
A. rise; stabilize B. fall; stabilize C. rise; fall D. fall; rise