If the Supply of a Product Increases, Then

question 183

Multiple Choice

If the supply of a product increases, then

• A)more will be purchased at the same price
• B)the price of the product must have declined
• C)demand for the good must have increased
• D)producers are willing to accept a lower price for each unit sold
• E)producers offer less for sale at each possible price

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Definitions:

Inelastic

Describing demand that changes little with price fluctuations; consumers’ buying habits are not significantly affected by price changes.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, demonstrating the sensitivity of consumers to price changes.

Quantity Purchased

The total number of units of a product or service bought by consumers in a specified period.

Price Elasticity

The evaluation of demand's reaction to fluctuations in the price of a particular good.