The Law of Supply States That, Other Things Equal, When

question 104

Multiple Choice

The law of supply states that, other things equal, when the price of a good

• A)falls, the supply of the good rises.
• B)rises, the quantity supplied of the good rises.
• C)rises, the supply of the good falls.
• D)falls, the quantity supplied of the good rises.

---

Definitions:

Current Price

Current Price is the market price at which an asset or service can be bought or sold at a particular time.

Expected Dividend

The anticipated amount that will be paid out in dividends to shareholders of a company, based on past and projected profitability.

Require a Rate of Return

The minimum expected yield by investors to compensate for the risk of an investment, influencing investment decisions and value.

Expected Selling Price

The price at which an asset is projected to sell in the future, based on various factors such as market trends and economic conditions.