How many of the following goods do you think conform to the general law of suppl
ID: 1217644 • Letter: H
Question
How many of the following goods do you think conform to the general law of supply! a) gasoline B) cheating on a test C) political favors from legislature D) the services of heart specialist E) children F) legal services And why?How many of the following goods do you think conform to the general law of supply! a) gasoline B) cheating on a test C) political favors from legislature D) the services of heart specialist E) children F) legal services And why?
a) gasoline B) cheating on a test C) political favors from legislature D) the services of heart specialist E) children F) legal services And why?
Explanation / Answer
Gasoline, cheating on a test and the services of heart specialist confirm the general law of supply which states that other things remaining the same, when price of commodity increases then quantity supplied of that commodity also increases and vice-versa. Increase in the price of gasoline increases its supply because firms are able to earn more profit on the sale of more units of gasoline. Increase in the number of tests increases the cheating on a test and increase in the price of heart specialist services increases the supply of these services as specialist are able to earn more profit due to higher price for their services.
On the other hand, all other goods does not affect the supply of commodity in the appopriate way. Increase in the price does not have any impact on the children, legal services, political favors from legislature.
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