The Relationship Between Quantity Supplied and the Price of Output

question 245

Multiple Choice

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

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

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Definitions:

Empty Nesters

Parents whose children have grown up and left home, leaving them with an empty household.

Boomerang Generation

Refers to young adults who return to live with their parents after a period of living independently due to economic or personal reasons.

Blended Family

A family unit composed of a couple and their children from this and all previous relationships.

Mixed-Union

A romantic partnership between individuals of different racial, ethnic, religious, or cultural backgrounds.