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:

Financial Statements

Reports that summarize the financial performance and condition of a company, including the balance sheet, income statement, and cash flow statement.

Average cost

The total cost of goods divided by the number of goods, used in inventory valuation and determining profit margins.

Periodic inventory system

A periodic inventory system is a method of inventory valuation where the inventory is updated and cost of goods sold is calculated at the end of a specific accounting period.

Ending inventory

The total value of all the goods still available for sale at the end of an accounting period.