Why does quantity supplied increase when price increases?
a. Producers find it more profitable to make the item.
b. People "drop out" of the market, so buyers find it more abundant.
c. As demand decreases with a high price, surpluses appear.
d. All of the above.
a
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The economic hardship resulting from a financial crises is severe, however, there are also social consequences such as
A) increased crime. B) difficulty getting a loan. C) currency devaluations. D) loss of output.
When the supply of real loanable funds is upward-sloping and the demand for real loanable funds rises, complete crowding-out:
a. Occurs because private demand falls by the same amount that government borrowing rises. b. Does not occur because taxes rise with the increase in real GDP. c. Does not occur because new funds are supplied to the Real Loanable Funds Market as the real, risk-free interest rate rises. d. Occurs because private borrowers will increase the amount their loans as the real risk-free interest rate rises.