If the Price of a Good Is Low

question 33

Multiple Choice

If the price of a good is low,

• A)firms would increase profit by increasing output.
• B)the quantity supplied of the good could be zero.
• C)the supply curve for the good will shift to the left.
• D)firms can and should raise the price of the product.

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Definitions:

Cocaine

A powerful and addictive stimulant drug extracted from the leaves of the coca plant, which increases levels of dopamine in the brain circuits regulating pleasure and movement.

Physiological Responses

The body's automatic reactions to internal or external stimuli, often part of the nervous and endocrine systems' roles.

Tolerance

The process by which one's body becomes less responsive to a substance or a stimulus after repeated exposure.

Intoxication

The condition of having physical or mental control impaired by the consumption of alcohol or drugs.