The Positive Relationship Between Price and Quantity Supplied, Other Things

question 21

Multiple Choice

The positive relationship between price and quantity supplied, other things being equal, is considered to be

• A)universally true for all markets.
• B)never true in heavily regulated markets.
• C)sometimes true in all markets.
• D)true only in market-based economies.
• E)true only when consumers act irrationally.

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Definitions:

For-Profit Corporation

A business entity aimed at generating profit for its shareholders.

Stock

A type of security that signifies ownership in a corporation, representing a claim on part of the corporation's assets and profits.

Domestic Corporation

A corporation is deemed a domestic corporation in the state that has granted its charter. If the corporation does business in other states, it is considered a foreign corporation in the other states.

Foreign Corporation

A business entity that is registered and operates in a jurisdiction or country different from where it was originally incorporated.