An Increase in the Supply of Commodity X for Any

question 19

Multiple Choice

An increase in the supply of commodity X for any given price of X could be caused by

• A)an increase in the prices of other commodities.
• B)an increase in the prices of factors of production important to this commodity.
• C)a reduction in the prices of factors of production important to this commodity.
• D)an increase in consumer income.
• E)none of the above.

---

Definitions:

Working Capital

The distinction between a business's immediate assets and liabilities, showcasing its operational effectiveness and short-term financial status.

Company

A legal entity formed by a group of individuals to operate a business, which can own property, incur liabilities, and sell products or services.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets, excluding inventory.

Company

A corporate body set up by a team of people aimed at operating and handling a business operation, which might be focused on commerce or industry.