If Price Rises, What Happens to Supply of a Product

question 344

Multiple Choice

If price rises, what happens to supply of a product?

• A) It increases.
• B) It decreases.
• C) It does not change.
• D) Uncertain--economic theory has no answer to this question.

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Definitions:

Rendered Performance

The act of providing or completing a service as per the terms of an agreement or contract.

Complete Performance

refers to the fulfillment of all terms and conditions as outlined in a contract or agreement, without deviation or shortfall.

Substantial Performance

A legal principle where a party has completed enough of their contractual obligations to warrant payment, despite minor deviations from the specified performance.

Absolute Promise

A commitment or guarantee that is unconditional and without any limitations or qualifications.