When There Is an Increase in Quantity Supplied

question 62

Multiple Choice

When there is an increase in quantity supplied,

• A)producers are forced to supply more by government mandate.
• B)producers are displaying a decreased willingness to produce because price has risen.
• C)technology must have improved.
• D)there must have been an increase in output price, ceteris paribus.
• E)consumers are unlikely to buy the additional product.

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Definitions:

Entrepreneurial Ability

The human resource that combines the other economic resources of land, labor, and capital to produce new products or make innovations in the production of existing products; provided by entrepreneurs.

Laissez-Faire Capitalism

is an economic system where transactions between private parties are free from government intervention, such as regulations, privileges, tariffs, and subsidies.

Economic Functions

Concern the roles and operations of an economy, including production, distribution, and consumption of goods and services among individuals and organizations.