Describe and give a reason for the law of supply

Please provide the best answer for the statement.


The law of supply indicates that producers will produce and sell more of their product at a high price than at a low price. This means that there is a direct relationship between price and quantity supplied. The basic explanation is that, given product costs, a higher price means greater profits and thus more incentive for business to increase the quantity supplied.

Economics

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A demand curve with an elasticity of 1.0 is a unit-elastic demand curve.

Answer the following statement true (T) or false (F)

Economics

Demand-pull inflation is caused by: a. an increase in aggregate demand

b. a decrease in aggregate demand. c. an increase in short-run aggregate supply. d. a decrease in short-run aggregate supply.

Economics

The multiplier for changes in government spending is calculated as

a. 1/(1+MPC). b. (1 - MPC)/MPC. c. 1/MPC. d. 1/(1 - MPC).

Economics

Antitrust enforcement is controversial mainly because

a. some business practices that seem anticompetitive may in fact have legitimate purposes. b. excessive competition can drive some firms out of business, causing job losses. c. cooperative domestic firms are best equipped to deal with international competitors. d. vigorous enforcement can reduce business profitability, lowering shareholder value.

Economics