Which of the Following Statements Best Illustrates the Law of Supply

question 98

Multiple Choice

Which of the following statements best illustrates the law of supply?

• A)When the price of oil rises, the supply of automobiles falls.
• B)When the price of steel falls, the supply of automobiles rises.
• C)When the price of computers rises, the quantity supplied of computers rises.
• D)When the price of televisions rises, the quantity supplied of televisions falls.

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Definitions:

Lockbox Systems

A service offered by banks to companies for the receipt of payment from customers, involving the use of specially designed lockboxes to speed up collections.

Lockbox Plan

A banking service that speeds up collection and processing of company receipts by having those payments mailed directly to a location accessible by the bank.

Collection Of Cheques

Collection of Cheques refers to the process banks undertake to collect the amount specified on a cheque from the bank upon which the cheque is drawn.

Collections Float

The time gap between when a check is deposited into a bank account and the funds are available for use.