7
QuizMultiple Choice

The Law of Supply and Demand — Quiz

Question 7 • Personal Finance and Economics

Which factor most directly affects a furniture company's supply?

Answer
A
a change in the price of rugs and other complementary goods
B
the growing number of furniture buyers in the market
C
the availability of raw materials and natural resources
D
an increased interest in antique furniture over modern furniture

Explanation

A company’s supply depends most directly on whether it can obtain the inputs needed to make its products. Furniture requires materials such as wood, metal, and fabric, so the availability of raw materials and natural resources affects how much the company can produce. More buyers and changing interest affect demand, while rug prices concern a complementary good.

AI-written and checked against the verified answer.

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