In which statement(s) is "supply" used correctly? (I) "An increase in the price of flour will increase the supply of flour."
(II) "As the cost of producing flour rises, the supply of flour will tend to fall."
A) in both statements I and II
B) in statement I only
C) in statement II only
D) in neither statements I nor II

Question

Quizplus · Accepted Answer

An increase in production costs typically leads to a decrease in supply, as producers are less willing or able to supply the same quantity at the same price. Statement II correctly reflects this economic principle.

In Which Statement(s) Is "Supply" Used Correctly? (I) "An Increase