Of the following, which is true of the relationship between the quantity of a good supplied and its price?
a. As price increases, the quantity supplied usually decreases.
b. As price increases, the quantity supplied usually increases.
c. As price increases, supply increases.
d. When demand increases, so will supply.
e. They always meet at the point of equilibrium in the market.
B
You might also like to view...
Assume the supply curve for product X is perfectly elastic and that government imposes a $2- per-unit excise tax. We can conclude that the resulting:
A. increase in output will be greater the less elastic the demand curve. B. decrease in output will be greater the less elastic the demand curve. C. decrease in output will be greater the more elastic the demand curve. D. increase in output will be greater the more elastic the demand curve.
Using Figure 2 below, suppose that the economy started at PAE2. A potential change that could cause the economy to go from PAE2 to PAE1 might be:
A. wealth level increases.
B. interest rates increase.
C. taxes decrease.
D. domestic income decreases.