According to the law of supply:
a. there is an inverse relationship between price and quantity demanded.
b. there is a direct relationship between price and quantity demanded
c. there is an inverse relationship between price and the quantity supplied.
d. there is a direct relationship between price and the quantity supplied.
d
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In the figure above, when the price falls from $8 to $7, total revenue
A) increases from $120 to $210 so demand is elastic. B) decreases from $210 to $120 so demand is inelastic. C) increases from $120 to $210 so demand is inelastic. D) decreases from $210 to $120 so demand is elastic. E) increases from $120 to $210, but more information is needed to determine whether demand is elastic, inelastic, or unit elastic.
A tax on imports equal to a percentage of the cost of those imports is known as
a. a specific tariff b. an ad valorem tariff c. a tax on luxury goods only d. an effective quota e. an ad valorem quota