Which of the Following Explains the Relationship Between Price and the Quantity

question 174

Multiple Choice

Which of the following explains the relationship between price and the quantity supplied?

• A)When expanding output, firms will incur greater total costs.
• B)As the price of a commodity falls, producers will find it more profitable to use higher-priced inputs in their production process.
• C)As a result of rising production costs, firms can increase profits by expanding output only if the price of output increases.
• D)To expand output, firms must hire more resources, which are always of poorer quality.
• E)Consumers want more at lower prices.

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Definitions:

NASDAQ

An international e-marketplace dedicated to the buying and selling of securities, which also acts as the benchmark for U.S. tech stocks.

NYSE

New York Stock Exchange; a leading global stock exchange where shares of public companies are bought and sold.

Dealer Market

A dealer market is a financial market mechanism in which dealers buy and sell securities for their own accounts, providing liquidity and pricing to the market.

Over-the-counter (OTC) Market

A decentralized market where securities are traded directly between two parties without the supervision of an exchange.