Which of the following is consistent with the law of supply?
Part 2
A.
Fewer
passengers chose to travel by airplane after the terrorist strikes of 9 divided by 11
.
B.
The state of California
has less grape
regulation than New York
,
and grape
production is lower in New York
.
C.
A reduction
of the price of salt, led to a 5 percent increase
in the quantity of salt consumed.
D.
An increase in the market price of MP 3 players
causes an increase in the production of MP 3 players
.
D. An increase in the market price of MP3 players causes an increase in the production of MP3 players.
This is consistent with the law of supply, as according to the law of supply, when the price of a good or service increases, the quantity supplied increases as well.
The answer that is consistent with the law of supply is D. An increase in the market price of MP3 players causes an increase in the production of MP3 players.
The law of supply states that as the price of a good or service increases, suppliers are willing to produce and sell more of that good or service. In this case, an increase in the market price of MP3 players would incentivize producers to increase their production of MP3 players to take advantage of the higher prices.
The answer that is consistent with the law of supply is D. An increase in the market price of MP3 players causes an increase in the production of MP3 players.
The law of supply states that there is a positive relationship between the price of a good and the quantity supplied. In other words, as the price of a good increases, producers are willing to supply more of that good. Conversely, as the price of a good decreases, producers are willing to supply less of that good.
In this case, when the market price of MP3 players increases, it creates a higher incentive for producers to supply more MP3 players. This is because they can now earn higher profits by selling the MP3 players at the increased price. Therefore, an increase in the market price of MP3 players causes an increase in the production of MP3 players, which aligns with the law of supply.