Reducing prices and increasing the quality of the products are potential means used by suppliers to exert power over firms competing within an industry.Question 15Answera.Trueb.False

Offering to buy more of a product if a manufacturer lowers its wholesale price is an example of power.

The supply of a good available in a market is likely to decrease when:A.new regulations increase the cost of making the product.B.new technology makes producing the product cheaper.C.the number of workers able to make the product increases.D.companies believe that the product's selling price will go up

Under the basic principle of supply, as the price goes down, manufacturers and suppliers of a product tend to supply less of the product to the market.Select one:TrueFalse

According to the law of _____ , producing significantly more of a product than current levels will come at a higher cost, so the price of the good must rise for sellers to be willing and able to increase the quantity of the good they supply to the market.Multiple choice question.increasing opportunity costsdemanddiminishing marginal productivityaverages

When suppliers have sufficient power, they can influence the terms and conditions of what they supply to producers.