14
QuizMultiple Choice

Unit 2: Understanding Microeconomics — Test

Question 14 • Personal Finance and Economics

According to the law of supply, price and quantity move

Answer
A
from the same point away from one another.
B
along a track in the same direction.
C
from different points toward one another.
D
along a track in opposite directions.

Explanation

The law of supply states that, other things being equal, producers are willing to offer more for sale when the price rises and less when the price falls. Thus, price and quantity supplied move in the same direction, as choice A says: “along a track in the same direction.”

AI-written and checked against the verified answer.

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