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:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

Financial Ratios

Metrics derived from financial statements that are used to evaluate a company's performance and financial health.

Total Sales

The aggregate revenue a company generates from the sale of goods or services before any deductions are made.

Compensation Paid

The total cash and non-cash payments that an individual or employee receives in exchange for their services or work performed.