The Law of Supply States That There Is a _____

question 114

Multiple Choice

The law of supply states that there is a _____ relationship between price and quantity ______.

• A) positive; demanded
• B) positive; supplied
• C) negative; demanded
• D) negative; supplied

---

Definitions:

Cash Budgeting

The process of planning and managing a company's cash inflows and outflows over a specific period of time, predicting its future cash position.

Carrying Costs

The expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs, which can affect a company's profitability.

Shortage Costs

Costs incurred when the demand for a product or service exceeds the supply, leading to potential loss of sales or customer dissatisfaction.

Restrictive Policy

A policy designed to limit or restrict certain actions, often used to control spending or investments.