Which of the Following Is True

question 146

Multiple Choice

Which of the following is true?

• A)A decrease in the price of ice cream would cause a decrease in the demand for frozen yogurt, a substitute.
• B)Just as demanders will demand more now if the price of a good is expected to rise in the near future, sellers will supply more now if the price of a good is expected to rise in the near future.
• C)An increase in supply leads to a movement up along the supply curve.
• D)Both technological progress and cost-increasing regulations will increase supply.
• E)None of the above is true.

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Definitions:

Long-Run Supply

The time period in which all factors of production and costs are variable, allowing firms to fully adjust to market conditions.

Curve

In economics, this refers to a graphical representation depicting the relationship between two variables, such as supply and demand.

Short Run

A period in economics where at least one input is fixed, limiting the ability of a business to adjust production levels.

Long Run

In economics, a time period in which all factors of production and costs are variable.