The Law of Supply Tells Us That Other Things Remaining

question 155

Multiple Choice

The law of supply tells us that other things remaining the same,as the

• A)price of gasoline falls,the quantity of gasoline supplied decreases.
• B)price of gasoline rises,the quantity of gasoline supplied decreases.
• C)supply of gasoline increases,the price of gasoline falls.
• D)cost of producing gasoline falls,the supply of gasoline will increase.
• E)cost of producing gasoline increases,the price of gasoline rises.

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Definitions:

Household Wealth

The net value of all assets owned by members of a household, including property, investments, and cash, minus liabilities.

Price Level

The mean price point of all goods and services within the economic framework.

Disposable Income

After-tax financial resources available to households for the purposes of saving and spending.

Unemployment Level

The proportion of the workforce that is not currently employed but actively seeking employment.