The World View article on the rise in gold prices indicates that
A)The quantity supplied falls when the price of gold rises.
B)The law of supply is true: as the price of gold rises,miners around the world search for new deposits of gold.
C)The law of supply is true because as the price of gold rises,the quantity supplied of gold actually falls.
D)The law of supply is not really relevant to the article.

Question

Quizplus · Accepted Answer

The article clearly states that as the price of gold rises, miners around the world are "racing to find new deposits of gold", which is a manifestation of the law of supply: as the price of a good rises, suppliers are incentivized to produce more of that good. Option A is incorrect because the article does not state that the quantity supplied of gold falls; in fact, it suggests the opposite. Option C is also incorrect because it states the opposite of what the article suggests. Option D is incorrect because the article is discussing the concept of supply and its relationship with rising gold prices.

The World View Article on the Rise in Gold Prices