Which of the Following Is an Example of the Law

question 365

Multiple Choice

Which of the following is an example of the law of supply?

• A) The price of gum has increased so producers are making more gum.
• B) The price of labor has increased and producers decrease supply.
• C) The amount of a good purchased increases when the price decreases.
• D) Producers provide less of a good when the price increases.

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Definitions:

Debtors

Individuals or entities that owe money to others.

Creditor Attempts

Efforts made by creditors to collect debts owed to them, which can include legal actions, settlement negotiations, or other collection activities.

Bargained-For Exchange

An agreement between parties where each receives something of value in exchange for something else.

Nominal Consideration

A minimal amount given in a contract that is not calculated by the actual value of the transaction but is symbolic, to make the agreement legally binding.