According to the law of supply:
A. more of a good is desired by consumers as the price falls.
B. less of a good is desired by consumers as the price rises.
C. more of a good will be offered by suppliers as the price rises.
D. less of a good will be offered by suppliers as the price rises.
Answer: C
You might also like to view...
A monopolist earning economic profit in the short run determines that at its present level of output, marginal revenue is $23 and marginal cost is $30 . Which of the following should the firm do to increase profit?
a. Raise price and lower output. b. Lower price and lower output. c. Raise price and raise output. d. Lower price and raise output. e. Lower output, but leave price unchanged.
Prior to the housing crisis of 2008, the federal government had been trying to ______ lending standards for low income people to ______ home ownership.
a. raise; decrease b. raise; increase c. lower; decrease d. lower; increase