Explain why there is a direct relationship between price and quantity supplied
What will be an ideal response?
For firms to produce more of a good per time period they have to purchase more materials, hire more labor, and purchase other inputs used to make the good. To get the producer to pay these higher costs it is necessary to increase the price the seller receives for each unit sold. Firms will also increase quantity supplied if the price of that good increases, allowing the firm to gain additional profits. The profits are incentives for the supplier to produce more.
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Lily wants to invest in the stock market. She notices that the share price for Widgets Inc. has been falling for weeks. She chooses to invest in Widgets Inc. because she assumes it is due for a rebound. Lily suffers from:
A. the hot-hand fallacy. B. the gambler's fallacy. C. irrational exuberance. D. the sunk cost fallacy.
Today, people changed their expectations about the future. This change a. can cause a movement along a demand curve
b. can affect future demand but not today's demand. c. can affect today's demand. d. cannot affect either today's demand or future demand.
When people trade goods for money, money is being used as a medium of exchange
a. True b. False Indicate whether the statement is true or false
Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following production process: Name of CompanyRevenuesCost of Purchased InputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$0.75The Corner Store$2.50$2.00If the corn was grown and the jar of popcorn produced in the year 2017, but the jar was sold at Friendly Groceries in the year 2018, what is the contribution of these transactions to GDP in the year 2018?
A. $1.50 B. $0.00 C. $0.50 D. $4.00