As the Price of a Commodity Decreases, What Happens to Supply

question 100

Multiple Choice

As the price of a commodity decreases, what happens to supply? ​

• A)If the price decreases, then the supply will increases.
• B)If the price decreases, then the supply will remain constant.
• C)If the price decreases, then the supply will decreases.

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Definitions:

Debt Financing

The practice of borrowing funds from external sources, typically through loans or bonds, to finance business activities.

Issuing Bonds

The act of a corporation or government borrowing money from investors by selling debt securities, known as bonds, which promise to repay the principal along with interest on specified dates.

Leasing Agreement

A contract where one party agrees to rent property owned by another party for a specified time period in exchange for payment.

Capital Markets

Financial markets in which long-term debt or equity-backed securities are bought and sold, serving as a platform for raising capital.