UNIT 01 / BASIC ECONOMIC CONCEPTS

Supply1.5 test

100 questions with explanations after each answer.

Practice mode

QUESTION 01 / 100Easy

The law of supply states that, all else equal, there is a ___ relationship between the price of a good and the quantity supplied.

Select one answerANeutral — price and quantity supplied are unrelatedBNegative — as price rises, producers reduce outputCPositive — as price rises, quantity supplied also risesDInverse — as price rises, quantity supplied fallsEProportional — a 10% rise in price always causes exactly a 10% rise in quantity supplied

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1 of 100

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Question 1