Last month,the Tecumseh Corporation supplied 400 units of three-ring binders at $6 per unit.This month,the company supplied the same quantity of binders at $4 per unit.Based on this evidence,Tecumseh has experienced
A)a decrease in supply.
B)an increase in supply.
C)an increase in the quantity supplied.
D)a decrease in the quantity supplied.

Question

Quizplus · Accepted Answer

The decrease in price from $6 per unit to $4 per unit indicates an increase in supply, as Tecumseh is able to offer the same quantity of binders for a lower price. The quantity supplied has remained constant at 400 units.

Last Month,the Tecumseh Corporation Supplied 400 Units of Three-Ring Binders