The correct response is:
quantity supplied increases
According to the law of supply, as the price of a good or service increases, the quantity supplied also increases, assuming all other factors remain constant (ceteris paribus).
The law of supply states that as price increases, ceteris paribus, _____.(1 point)
Responses
quantity supplied increases
quantity supplied increases
supply decreases
supply decreases
supply increases
supply increases
quantity supplied decreases
9 answers
What is the difference between supply and quantity supplied?(1 point)
Responses
Supply is the total amount of goods available; quantity supplied is how much is made available at each price level.
Supply is the total amount of goods available; quantity supplied is how much is made available at each price level.
Supply is how much consumers are willing to buy; quantity supplied is how much is made available.
Supply is how much consumers are willing to buy; quantity supplied is how much is made available.
Supply deals with the decisions of consumers and quantity supplied deals with the decisions of a producer.
Supply deals with the decisions of consumers and quantity supplied deals with the decisions of a producer.
Supply and quantity supplied are the same.
Responses
Supply is the total amount of goods available; quantity supplied is how much is made available at each price level.
Supply is the total amount of goods available; quantity supplied is how much is made available at each price level.
Supply is how much consumers are willing to buy; quantity supplied is how much is made available.
Supply is how much consumers are willing to buy; quantity supplied is how much is made available.
Supply deals with the decisions of consumers and quantity supplied deals with the decisions of a producer.
Supply deals with the decisions of consumers and quantity supplied deals with the decisions of a producer.
Supply and quantity supplied are the same.
The correct response is:
Supply is the total amount of goods available; quantity supplied is how much is made available at each price level.
Supply refers to the overall relationship between the price of a good and the total quantity of that good that producers are willing and able to sell in the market at various price levels. Quantity supplied, on the other hand, refers to the specific amount of a good that producers are willing to sell at a particular price point.
Question
A vertical supply curve is said to be _____.(1 point)
Responses
relatively elastic
relatively elastic
perfectly elastic
perfectly elastic
relatively inelastic
relatively inelastic
perfectly inelastic
perfectly inelastic
A vertical supply curve is said to be _____.(1 point)
Responses
relatively elastic
relatively elastic
perfectly elastic
perfectly elastic
relatively inelastic
relatively inelastic
perfectly inelastic
perfectly inelastic
The correct response is:
perfectly inelastic.
A vertical supply curve indicates that the quantity supplied does not change regardless of changes in price, meaning it is perfectly inelastic.
Which of the following producers is most likely to face a relatively elastic supply curve in the short run?(1 point)
Responses
an international shipping company
an international shipping company
a national chain of grocery stores
a national chain of grocery stores
a local restaurant who uses produce and ingredients from local farms
a local restaurant who uses produce and ingredients from local farms
an automobile manufacturer corporation
Responses
an international shipping company
an international shipping company
a national chain of grocery stores
a national chain of grocery stores
a local restaurant who uses produce and ingredients from local farms
a local restaurant who uses produce and ingredients from local farms
an automobile manufacturer corporation
The correct response is:
a national chain of grocery stores.
In the short run, a national chain of grocery stores is likely to face a relatively elastic supply curve because they can adjust their inventory and stock levels more flexibly in response to price changes, compared to the other options listed, which may have more rigid supply constraints.
Which is an example of promotional pricing?(1 point)
Responses
A company sells a product for $6.99 rather than $7.00.
A company sells a product for $6.99 rather than $7.00.
A business places billboard ads in a heavily populated area of town, hoping to attract more consumers.
A business places billboard ads in a heavily populated area of town, hoping to attract more consumers.
A business sells a new product at a lower price initially, but raises prices once the product has loyal customers.
A business sells a new product at a lower price initially, but raises prices once the product has loyal customers.
A company offers 40% off with a $60 or more purchase.
A company offers 40% off with a $60 or more purchase.
Responses
A company sells a product for $6.99 rather than $7.00.
A company sells a product for $6.99 rather than $7.00.
A business places billboard ads in a heavily populated area of town, hoping to attract more consumers.
A business places billboard ads in a heavily populated area of town, hoping to attract more consumers.
A business sells a new product at a lower price initially, but raises prices once the product has loyal customers.
A business sells a new product at a lower price initially, but raises prices once the product has loyal customers.
A company offers 40% off with a $60 or more purchase.
A company offers 40% off with a $60 or more purchase.
The correct response is:
A business sells a new product at a lower price initially, but raises prices once the product has loyal customers.
This strategy is an example of promotional pricing known as "penetration pricing," where a company initially offers a product at a lower price to attract customers and build market share, with the intention of raising prices later once they have established a loyal customer base.
1 answer