If Supply Increases, Then

question 2

Multiple Choice

If supply increases, then:

• A)demand will increase.
• B)the quantity demanded will increase.
• C)the quantity demanded will decrease.
• D)price will increase.

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Definitions:

Perfectly Inelastic

A situation in market demand where the quantity demanded does not change regardless of changes in the product's price.

Supply Curve

A graphical representation showing the relationship between the price of a product and the quantity of the product that a supplier is willing to make available.

Elasticity of Supply

A metric assessing how the provision of a good changes in response to price adjustments.

Quantities Supplied

The amount of goods and services that producers are willing and able to sell at a given price over a specified period.