"Other Things Equal,when the Price of a Good Rises,the Quantity

question 24

Multiple Choice

"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied

• A)is referred to as the law of supply.
• B)applies only to a few goods in the economy.
• C)is represented by a downward-sloping supply curve.
• D)All of the above are correct.

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Definitions:

Replenished Material

Materials that have been restocked or resupplied to ensure adequate levels for production.

Relevant Cost

Costs that are directly influenced by a specific business decision and will change as a result of that decision.

Existing Stocks

Refers to the inventory of goods or materials that a company currently holds.

Idle Capacity

The portion of a company's resources that could be used for production but remains unutilized during a certain period.