The law of supply states that as price increases, ceteris paribus, quantity supplied increases.
The law of supply states that as price increases, ceteris paribus, _____.(1 point)
Responses
quantity supplied increases
quantity supplied increases
quantity supplied decreases
quantity supplied decreases
supply increases
supply increases
supply decreases
11 answers
What is the difference between supply and quantity supplied?(1 point)
Responses
Supply and quantity supplied are the same.
Supply and quantity supplied are the same.
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 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.
Responses
Supply and quantity supplied are the same.
Supply and quantity supplied are the same.
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 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.
The correct response is: Supply is the total amount of goods available; quantity supplied is how much is made available at each price level.
A vertical supply curve is said to be _____.(1 point)
Responses
perfectly inelastic
perfectly inelastic
relatively inelastic
relatively inelastic
perfectly elastic
perfectly elastic
relatively elastic
Responses
perfectly inelastic
perfectly inelastic
relatively inelastic
relatively inelastic
perfectly elastic
perfectly elastic
relatively elastic
A vertical supply curve is said to be 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
an automobile manufacturer corporation
an automobile manufacturer corporation
a national chain of grocery stores
a national chain of grocery stores
a local restaurant who uses produce and ingredients from local farms
Responses
an international shipping company
an international shipping company
an automobile manufacturer corporation
an automobile manufacturer corporation
a national chain of grocery stores
a national chain of grocery stores
a local restaurant who uses produce and ingredients from local farms
The producer most likely to face a relatively elastic supply curve in the short run is a national chain of grocery stores.
This is because national chains can often adjust their inventory and sourcing more flexibly in response to price changes compared to other options listed.
Which is an example of promotional pricing?(1 point)
Responses
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 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 company sells a product for $6.99 rather than $7.00.
A company sells a product for $6.99 rather than $7.00.
A company offers 40% off with a $60 or more purchase.
Responses
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 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 company sells a product for $6.99 rather than $7.00.
A company sells a product for $6.99 rather than $7.00.
A company offers 40% off with a $60 or more purchase.
An example of promotional pricing is: A company offers 40% off with a $60 or more purchase.
Promotional pricing involves temporary price reductions or special offers to attract customers and increase sales.
Answer to Question 4 is incorrect. The correct answer is "A local restaurant who uses produce and ingredients from local farms."
The rest of the answers above are correct.
The rest of the answers above are correct.
I apologize for the oversight in my previous response. You are correct: a local restaurant who uses produce and ingredients from local farms is likely to face a relatively elastic supply curve in the short run because their ability to adjust to price changes is limited by the availability of local produce.
Thank you for your understanding, and please let me know if you have any more questions or need further assistance!
1 answer