A Producer of Automobile Batteries Notes That the Price of Batteries

question 20

Multiple Choice

A producer of automobile batteries notes that the price of batteries has risen over each of the past three years. The firm decides to expand its battery production. This illustrates

• A) the law of supply.
• B) the law of market price.
• C) the law of equilibrium.
• D) the law of demand.
• E) the law of supply and demand.

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Definitions:

Obsolescence

The process of becoming outdated or no longer used, often due to technological advancements or changes in preferences.

Loss

A financial condition indicating that expenses have exceeded revenues over a certain period, leading to negative profit.

Disposal

Disposal involves getting rid of something, typically waste or assets no longer needed or useful for the business.

Goodwill

The value of all favorable attributes that relate to a company that is not attributable to any other specific asset.