Which of the following demonstrates the law of supply?
a. When the price of leather belts rose, leather belt sellers increase their quantity supplied of leather belts.
b. When car production technology improved, car producers increased their supply of cars.
c. When sweater producers expected sweater prices to rise in the near future, they decreased their current supply of sweaters.
d. When ketchup prices rose, ketchup sellers decreased their quantity supplied of ketchup.
Ans: a. When the price of leather belts rose, leather belt sellers increase their quantity supplied of leather belts.
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The ultimate or absolute measure of value in the opportunity cost perspective
A) does not exist. B) is the labor embodied in goods. C) is the money price of the goods. D) is the nonrenewable resources consumed in producing the goods.
Refer to Table 4-7. If a minimum wage of $12.50 an hour is mandated, what is the quantity of labor demanded?
A) 80,000 B) 550,000 C) 630,000 D) 1,180,000
If the marginal propensity to consume (MPC) is 4/5, the value of the simple multiplier is: a. 4
b. 1/5. c. 4/5. d. 5/4. e. 5.
If resources are underemployed, then the economy is producing as much as possible
Indicate whether the statement is true or false