Which of the Following Explains the Relationship Between Price and the Quantity

question 174

Multiple Choice

Which of the following explains the relationship between price and the quantity supplied?

• A)When expanding output, firms will incur greater total costs.
• B)As the price of a commodity falls, producers will find it more profitable to use higher-priced inputs in their production process.
• C)As a result of rising production costs, firms can increase profits by expanding output only if the price of output increases.
• D)To expand output, firms must hire more resources, which are always of poorer quality.
• E)Consumers want more at lower prices.

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Definitions:

Real Property

Land and anything permanently attached to it, such as buildings and trees, as opposed to personal property.

UCC

The Uniform Commercial Code consists of regulations governing sales and commercial activities across the United States.

Consumer Goods

Products bought for consumption by the average consumer, typically including items such as food, clothing, and household goods.

Automatically Perfected

A legal status of a security interest in which it becomes enforceable against third parties without any further action required by the interest holder.