Multiple Choice QuestionIn the short run, as the price rises,:Multiple choice question.supply becomes horizontal.quantity supplied does not change.quantity supplied falls.quantity supplied rises.
Question
Multiple Choice QuestionIn the short run, as the price rises,:Multiple choice question.supply becomes horizontal.quantity supplied does not change.quantity supplied falls.quantity supplied rises.
Solution
The correct answer is: quantity supplied rises.
Here's why: In the short run, as the price of a good or service increases, suppliers are willing to produce and sell more of it to maximize their profits. This is based on the law of supply, which states that there is a direct relationship between price and quantity supplied, all other factors being held constant. Therefore, when price rises, quantity supplied also rises.
Similar Questions
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