Which of the Following Statements Best Represents the Law of Supply

question 30

Multiple Choice

Which of the following statements best represents the law of supply?

• A) Price and quantity supplied are inversely related.
• B) Price and quantity supplied are directly related.
• C) Price and quantity supplied are inversely related,ceteris paribus.
• D) Price and quantity supplied are directly related,ceteris paribus.
• E) Price and supply are directly related,ceteris paribus.

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Definitions:

Government Decision Making

Involves the processes and actions through which government officials or bodies determine policies, allocate resources, and address public issues.

Fiscal Policy

Changes in government spending and tax collections designed to achieve full employment, price stability, and economic growth; also called discretionary fiscal policy.

Paradox Of Voting

A situation in democratic decision-making where rational individual choice can lead to an outcome that seems irrational or suboptimal for the group.

Principal-Agent Problem

A dilemma in economics where one party (the agent) is expected to act in the best interest of another party (the principal) but may have a conflict of interest.