One day a supplier supplied 300 units of a good at $20 per unit. A week later the same supplier supplied the same number of units at $10 per unit. Based on this evidence the supplier has experienced:A.an increase in quantity supplied.B.a decrease in supply.C.no change in supply or demand.D.an increase in supply.E.a decrease in quantity supplied.
Question
One day a supplier supplied 300 units of a good at 10 per unit. Based on this evidence the supplier has experienced:A.an increase in quantity supplied.B.a decrease in supply.C.no change in supply or demand.D.an increase in supply.E.a decrease in quantity supplied.
Solution
The correct answer is C. No change in supply or demand. Here's why:
-
The quantity supplied by the supplier remained the same in both instances - 300 units. This means there was no increase or decrease in the quantity supplied.
-
The price per unit changed, but this does not indicate a change in supply or demand. It could be due to a variety of factors, such as a sale or a change in the supplier's pricing strategy.
-
Supply and demand are determined by a variety of factors, including price, but also including factors like the availability of substitutes, consumer preferences, and income levels. Without information on these other factors, we cannot determine whether there has been a change in supply or demand.
-
Therefore, based on the information given, the supplier has experienced no change in supply or demand.
Similar Questions
Yesterday, a seller supplied 328 units of good X at $973 per unit. Today, the same seller supplies the same quantity of good X at $625 per unit. Based on this evidence, the seller has experienced ............Question 6Select one:a.a decrease in the quantity supplied. b.an increase in supply.c.an increase in the quantity supplied.d.a decrease in supply.e.an increase in demand.Clear my choiceQuestion 7Not yet answeredMarked out of 1.00Flag questionTipsQuestion textIf the price of potato chips increases, other things being equal, demand for potato-chip dip will:Question 7Select one:a.decrease, because the goods are complements.b.increase, because the goods are substitutes.c.not change, only the quantity demanded will change.d.decrease, because the goods are substitutes.Clear my choiceQuestion 8Not yet answeredMarked out of 1.00Flag questionTipsQuestion textWhen the price of a good is above its equilibrium price:Question 8Select one:a.a shortage puts downward pressure on the price.b.a surplus puts downward pressure on the price.c.a surplus puts upward pressure on the price.d.a shortage puts upward pressure on the price.e.there will be no effect on the market response.Clear my choiceQuestion 9Not yet answeredMarked out of 1.00Flag questionTipsQuestion textAssuming cosmetics are a normal good, an increase in consumer income, other things being equal, will ..............Question 9Select one:a.cause a downward movement along the demand curve for cosmetics.b.cause an upward movement along the demand curve for cosmetics.c.shift the demand curve for cosmetics to the right.d.shift the demand curve for cosmetics to the left.Clear my choiceQuestion 10Not yet answeredMarked out of 1.00Flag questionTipsQuestion textThe effect of a decrease in the price of coffee, ceteris paribus, causes a (an):Question 10Select one:a.increase in quantity of coffee demanded.b.rightward shift in the demand curve for coffee.c.no change in the demand for coffee.d.decrease in the quantity of coffee demanded.e.leftward shift in the demand curve for coffee.
Law of Supply - The tendency of suppliers to offer more of a good at a higher price.Question 7AnswerTrueFalse
A firm has a production capacity of 20,000 units. When 10,000 units are produced, fixed costs are $16 per unit. Therefore, when 20,000 units are produced fixed costs will_______:Question 9Select one:a.remain at $16 per unitb.increase to $32 per unitc.total $320,000d.decrease to $8 per unit
According to the law of supply which of the following is true.Question 15Select one:a.The higher the price the higher the quantity supplied.b.The lower the price the higher the quantity suppliedc.Price only influences quantity demanded.d.Price has no influence on the quantity suppliede.A higher price means less will be supplied.
What has happened when the quantity supplied decreases?A.Price has increased.B.Supply has increased.C.Supply has decreased.D.Price has decreased.
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.