What Will Happen If the Price of a Good Is

question 90

Multiple Choice

What will happen if the price of a good is low?

• A) Firms would increase profit by increasing output.
• B) Quantity supplied could be zero.
• C) The supply curve for the good will shift to the left.
• D) Firms should raise the price of the product.

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Definitions:

Indirect Materials

Materials used in the production process that do not become part of the final product, such as lubricants and cleaning supplies.

Transaction Cost

The expenses incurred when buying or selling goods or services, including fees, communication charges, and other financial costs.

Management Cost

Expenses associated with the administration and operation of a business, including salaries of managers and costs of strategic activities.

Supplier Viability

The ability of a supplier to continue delivering products or services over time, maintaining financial stability and operational capability.