The law of supply includes the statement "other things being equal." These other things include all of the following EXCEPT
A) resource prices.
B) technology.
C) producers' expectations.
D) consumer's income.

Question

Quizplus · Accepted Answer

The law of supply is focused on factors that affect producers' willingness and ability to produce goods and services, and therefore the price and quantity supplied. Consumer's income is not directly related to the supply side, but rather the demand side of the market. Therefore, it is not one of the "other things" in the law of supply. Resource prices, technology, and producers' expectations all directly affect the cost and profitability of production, and thus influence the quantity supplied at each price level.

The Law of Supply Includes the Statement "Other Things Being