Producers Are Willing to Offer Greater Quantities for Sale at Higher

question 55

Multiple Choice

Producers are willing to offer greater quantities for sale at higher prices because

• A) they have the incentive to pay the increasing opportunity cost of resources necessary to attract them from alternative uses
• B) they will decrease their profits by expanding production at higher prices
• C) the government orders them to do so
• D) lower prices attract new firms, which have higher costs of production
• E) they hire superior quality, higher-priced resources as production expands

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Definitions:

Commodity Money

Anything that serves both as money and as a commodity; money that has intrinsic value such as gold or silver coins.

Double Coincidence

A situation in a barter system where two parties each hold an item the other wants, necessitating an exact match to complete an exchange.

Trade

The exchange of goods, services, or both between countries or individuals, allowing for the specialization and efficiency benefits.

Relative Values

A measure of the worth or importance of one thing in comparison to another, often used in economics to compare the value of different commodities or services.