All else being equal, if the law of supply states that as the price of a good, service, or resource rises
A. the quantity supplied will decrease, which explains the shape of the supply curve.
B. the quantity demanded will decrease, which explains the shape of the supply curve.
C. the quantity supplied will increase, which explains the shape of the supply curve.
D. the quantity demanded will increase, which explains the shape of the supply curve.
Answer: C
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Which of the following four-firm concentration ratios would be the best indicator of an oligopoly?
A) 0.25 percent B) 31 percent C) 78 percent D) 100 percent E) 11 percent
The U-shaped average total cost curve is
A) a result of firms' wanting to find the output level where cost is at its minimum. B) unrealistic because average total cost always increases as output increases. C) the result of average fixed cost falling and decreasing marginal returns as output increases. D) a result of constant marginal returns. E) a result of increasing marginal returns.
Equilibrium is defined as a situation in which
A) neither buyers nor sellers want to change their behavior. B) no government regulations exist. C) demand curves are perfectly horizontal. D) suppliers will supply any amount that buyers wish to buy.
Which of the following statements about banks is correct?
a. Regulation requires that banks maintain a minimum amount of assets. b. Regulation requires that banks maintain a minimum amount of net worth. c. Regulation requires that banks maintain a minimum amount of liabilities. d. Regulation requires that banks maintain a minimum amount of insurance.