Quantity Supplied Increases When the Price of a Good Increases

question 281

Multiple Choice

Quantity supplied increases when the price of a good increases because

• A)producers find it more profitable to make the item.
• B)potential buyers "drop out" of the market, so the good becomes more abundant.
• C)as demand decreases with a high price, surpluses appear.
• D)All of these responses are correct.

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Definitions:

Interest Accrue

The process by which interest is added to the principal sum of a loan or deposit, typically over time.

Instrument Due

This term refers to the date on which a financial instrument, such as a check or note, is payable.

Bearer

A person in the possession of an instrument payable to bearer or indorsed in blank.

Negotiable

Capable of being transferred or modified in terms of agreement or ownership through endorsement or delivery.