The Law of Supply (movement along the curve due to the price effect) occurs because
A) producers usually offer more for sale at lower prices than at higher prices.
B) marginal production costs usually fall at higher rates of production.
C) people can buy only so much of a product.
D) None of the above
I think it's C or D
To determine the correct answer to this question, let's break down the options and analyze them:
A) Producers usually offer more for sale at lower prices than at higher prices.
This option refers to the supply curve and how producers respond to changes in prices. According to the law of supply, as the price of a good or service increases, producers are generally willing to offer more of it for sale. Conversely, when prices decrease, producers tend to supply less of the product. This relationship demonstrates a movement along the supply curve due to the price effect.
B) Marginal production costs usually fall at higher rates of production.
This option discusses the relationship between marginal production costs and rates of production. While it is true that marginal production costs might decrease with higher rates of production in some cases, it does not directly explain the movement along the supply curve due to the price effect.
C) People can buy only so much of a product.
This option seems unrelated to the law of supply. It addresses the concept of demand, where consumers have limits to their purchasing power. This factor does not explain the movement along the supply curve due to the price effect.
D) None of the above.
Option D suggests that none of the given options are correct.
Based on the explanations above, it becomes evident that the correct answer is indeed D) None of the above. Neither option A nor option C accurately explain the movement along the supply curve due to the price effect.