The Relationship Between Quantity Supplied and the Price of Output

question 50

Multiple Choice

The relationship between quantity supplied and the price of output is such that

• A)an increase in price will lead to an increase in quantity supplied.
• B)quantity will decrease as the number of firms increases.
• C)an increase in price will produce an inward shift in the supply curve.
• D)an increase in quantity will automatically lead to a reduction in price.

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Definitions:

Ranked Preferences

A method of ordering alternatives based on their level of desirability or utility to an individual or group.

Public Good

A public good is a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Economic Analysis

The systematic approach for comparing the costs and benefits of different courses of action in terms of their impact on the economy.