Statement I: a Change in Supply and a Change in Quantity

question 12

Multiple Choice

Statement I: A change in supply and a change in quantity supplied are two ways of saying exactly the same thing.
Statement II: A change in income or changes in tastes and preferences for a good will cause a shift in the supply curve.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Lowest Cost Alternative

A cost-minimization strategy that involves choosing the most economical option among different possible choices.

Evaluate Possible Courses

The process of examining and considering all potential actions to determine the best course of action.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to fixed costs and profits.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.