Which Statement Is True About Supply

question 108

Multiple Choice

Which statement is true about supply?

• A) There is an inverse relationship between price and quantity supplied.
• B) Supply refers to the amount of inventory that sellers have in their warehouses.
• C) As price decreases, producers are willing to put more of the good on the market for sale.
• D) To entice producers to offer more of a good on the market for sale, price must rise.

---

Definitions:

Investment Model

A theory in social psychology that examines how commitment in relationships is affected by satisfaction, quality of alternatives, and investments made into the relationship.

Tempting Alternatives

Enticing options that may distract from a primary choice or decision.

Committed

Describes being dedicated or bound to a cause, activity, or goal, demonstrating loyalty or obligation.

Informational Social Influence

The process of changing one's behavior to fit in with the group due to the belief that the group is competent and has the correct information.