Which statement is true?Multiple ChoiceThere is an inverse relationship between product price and quantity supplied.As product price decreases, producers are willing to put more of the good on the market for sale.To entice producers to offer more of a product on the market for sale, product price must rise.There is some price at which quantity supplied of a product is negative.
Question
Which statement is true?Multiple ChoiceThere is an inverse relationship between product price and quantity supplied.As product price decreases, producers are willing to put more of the good on the market for sale.To entice producers to offer more of a product on the market for sale, product price must rise.There is some price at which quantity supplied of a product is negative.
Solution
The true statement is: "To entice producers to offer more of a product on the market for sale, product price must rise." This is based on the law of supply in economics, which states that, all else being equal, an increase in price results in an increase in quantity supplied. Producers are willing to supply more at a higher price because selling a higher quantity at a higher price increases revenue.
Similar Questions
If the price of a product increases, we would expect:Multiple Choicequantity demanded to increase.supply to decrease.quantity supplied to increase.demand to decrease.
If the price of a product were to go down, what would happen to the quantity demanded of that product?Multiple ChoiceQuantity would increase.Quantity would decrease.Demand would increase.Demand would decrease.Demand and quantity would stay the same.
According to the law of supply, producers provide _____ of a good when the price _____.Multiple choice question.less; increasesless; decreasesmore; decreases
The relationship between a price of a good and a supply of it is positive.Select one:TrueFalse
Multiple Choice QuestionHow does a monopolist change the price of its product?Multiple choice question.By changing the input costs of the product it produces.By changing the quality of the product it produces.It is unable to change the price of its product.By changing the quantity of the product it produces.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.