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.

---

Definitions:

Capital

Resources, especially financial assets, used to create goods, services, or wealth.

Production Possibilities Curve

A graphical representation showing the maximum quantity of two goods or services that can be produced with limited resources.

Temporarily Operating

A status of business or facility operation for a limited period or until a specific event occurs, often used in contexts of transitional management or during emergencies.

Production Possibilities Curve

The Production Possibilities Curve is a graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently employed.