A Simple Supply Curve Shows That an Increase in the Price

question 42

Multiple Choice

A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to

• A) decrease.
• B) increase.
• C) remain constant.
• D) fluctuate randomly around its equilibrium value.

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Definitions:

Escalation Of Commitment

A decision-making error in which individuals or groups continue to invest in a failing course of action based on the time, money, or resources they have already committed.

Systematic Way

An organized, methodical approach to procedures or activities, often characterized by order and planning.

Positive Mood

A psychological state characterized by feelings of joy, satisfaction, and increased energy.

Decision Making

The act of making choices by identifying a decision, gathering information, and assessing alternative resolutions.