The Law of Supply states that:   Question 2 options: a all other factors fixed, a greater quantity of a good will be demanded at lower prices b all other factors fixed, a greater quantity of a good will be supplied at higher prices c all other factors fixed, a greater quantity of a good will be demanded at higher prices d all other factors fixed, a greater quantity of a good will be supplied at lower prices

67) Jane has noticed that she used topay $2.75 for a hamburger and now she pays $3.0. Which of the following statements is TRUE? A) Jane will stop consuming hamburgers. B) The law of supply explains why the price of hamburgers has increased. C) The money price of hamburgers has increased. D) The relative price of hamburgers has increased compared to hotdogs. 86) Market supply is obtained by A) summing the amount demanded by individual consumers at various prices. B) the law of supply. C) observing how the supply curve shifts. D) summing the amount supplied by individual producers at various prices. 65) An increase in supply will occur when  A) the demand curve shifts upward to the right. B) the supply curve shifts downward to the right. C) the demand curve shifts downward to the left. D) the supply curve shifts upward to the left.

The law of supply states that there is a positive relationship between the price of a good and the quantity supplied (supply curves representing the price and quantity demanded). From a business owners standpoint, if I was wanting to sell more of a good, I would want to lower the price. This doesnt make sense to me. In my head more quantity should mean lower price.

Explain why each of the following statements is false:   If beer and wine are substitutes, an increase in the price of beer will increase both the demand and supply of wine. An increase in the price of Pepsi would increase the quantity demanded of Coke but not the demand for Coke. An increase in income causes an increase in demand for all goods.

Consider the market for hazelnuts. Use the supply and demand model to explain the effect of the following scenarios on the equilibrium price (P*) and the equilibrium quantity (Q*) of hazelnuts. In each of the following scenarios, does the supply curve shift? Does the demand curve shift? If there is a shift of the supply and/ or the demand curve, in what direction? Show graphically. Does the equilibrium price of hazelnuts increase or decrease? Does the equilibrium quantity of hazelnuts increase or decrease? 1. Adverse weather conditions destroy a large amount of hazelnut trees in Turkey, the leading hazelnut producer in the world. 2. The Italian company Ferrero makes a decision to increase the hazelnut content in its Nutella cocoa hazelnut spread. 3. New research finds that hazelnuts lower cholesterol and improve heart health more than people previously thought, and lots of people become aware of the results of the new study.