In Which Statement(s) Are "Supply" and "Quantity Supplied" Used Correctly

question 294

Multiple Choice

In which statement(s) are "supply" and "quantity supplied" used correctly? (I) "An increase in the price of computers will increase the quantity supplied of computers."
(II) "A technological advance that lowers the cost of producing computers will increase the supply of computers."

• A) in both statements I and II
• B) in statement I only
• C) in statement II only
• D) in neither statements I nor II

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Definitions:

Margin Of Safety

The difference between actual or projected sales and the break-even point, indicating the level of risk in a business.

Wire Strippers

A hand tool used to remove the insulation from electric wires to make connections or terminations.

Manufacturer

A business entity engaged in the production of goods through the processing of raw materials and components.

Net Operating Income

Net operating income is the profit derived from a company's regular, core business operations, excluding expenses and revenues from non-operating activities, crucial for assessing operational efficiency.