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AssignmentMultiple Choice

The Law of Supply and Demand

Question 1 • 2102320-Economics HONORS - Edgenuity Teacher

The price of blue widgets rises to $6.Assuming that all other factors remain the same, how should the factory respond to this increase of price?

Answer
A
by decreasing the number of blue widgets supplied
B
by increasing the number of blue widgets supplied
C
by increasing the number of green widgets supplied

Explanation

When the price of blue widgets rises and other factors stay the same, producing them becomes more profitable. The factory should respond by increasing the quantity of blue widgets it supplies. So the correct choice is “by increasing the number of blue widgets supplied.”

AI-written and checked against the verified answer.

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