ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a milling company builds a new factory to process flour for export
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a catering company buys a new dishwasher to make their work easier
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a food producer increases the number of acres of wheat he grows to supply a milling company
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a sandwich shop increases the number of sandwiches they supply every day when the price is increased
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Detailed explanation-1: -Answer and Explanation: A sandwich shop increases the number of sandwiches they supply every day when the price is increased. Law of supply states that as the price of good increases the quantity supplied by the producer also increases.
Detailed explanation-2: -What is the law of supply and demand in economics? It is a core concept in economics that describes the relationship between producers and purchasers of a product or service. For example, sellers show interest in producing and supply more when the price is high and vice versa as price declines.
Detailed explanation-3: -Which of the following best describes the law of supply? The correct answer is: a. An increase or decrease in the price of a good will increase or decrease the amount producers are willing and able to produce and sell.
Detailed explanation-4: -Supply and demand rise and fall until an equilibrium price is reached. For example, suppose a luxury car company sets the price of its new car model at $200, 000. While the initial demand may be high, due to the company hyping and creating buzz for the car, most consumers are not willing to spend $200, 000 for an auto.