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The Law of Supply Reflects the Fact That

Question 58

Multiple Choice

The law of supply reflects the fact that


A) people buy more of a good when its price falls.
B) the demand curve is downward sloping.
C) suppliers have an incentive to use their resources in the way that brings the biggest return.
D) businesses can sell more goods at lower prices.
E) higher prices are more attractive to consumers because they signal a higher quality product.

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