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11 Dec 2019
All other things equal, when the price of a good falls, the
a. the demand for the good falls
b. the demand for the good rises
c. the supply for the good rises
d. None of the above
All other things equal, when the price of a good falls, the
a. the demand for the good falls
b. the demand for the good rises
c. the supply for the good rises
d. None of the above
Sonia DhawanLv10
12 Sep 2020
Related textbook solutions
Related questions
a. State the law of supply.
| Quantity supplied rises as price increases, other things are constant. Quantity supplied falls as price decreases, other things are constant. | |
| Supply increases as price falls. Supply decreases as price rises. | |
| Supply increases as price increases. Supply decreases as price decreases. | |
| Quantity supplied rises as price falls, other things constant. Quantity supplied falls as price increases, other things are constant. |
b. Why is price directly related to quantity supplied?
| As price rises, consumers substitute other goods whose price has not risen. | |
| As price rises, suppliers rearrange their activities to supply more of that good to take advantage of the higher price. | |
| As price falls, suppliers rearrange their activities to supply more of that good to take advantage of the lower price. | |
| As price rises, suppliers rearrange their activities to supply more of a substitute good to take advantage of the higher price. |
