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.

Question

Quizplus · Accepted Answer

The article supports the law of supply, which states that as the price of gold rises, miners around the world will search for new deposits of gold. This is demonstrated by the increase in exploration and mining activity in response to the rise in gold prices. The article does not support choice A, as it does not mention a decrease in the quantity supplied when the price of gold rises. Choice C is also not supported, as the article provides evidence of increased supply in response to higher prices.

The World View Article on the Rise in Gold Prices