The Law of Supply Can Be Stated As

question 42

Multiple Choice

The law of supply can be stated as:

• A)all else equal,quantity supplied rises as price falls.
• B)all else equal,quantity supplied rises as price rises.
• C)all else equal,quantity supplied rises as income rises.
• D)all else equal,quantity supplied rises as income falls.

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Definitions:

Variable Expenses

Costs that change in proportion to the activity of a business, such as sales or production levels.

Fixed Expenses

Costs that do not change in total despite fluctuations in the volume of goods or services produced or sold.

Annual Sales

The total revenue generated from the sale of goods or services in one fiscal year.

Variable Expenses Per Unit

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor costs per unit.