QuestionJune 22, 2025

When the selling price of a good goes up, what is the relationship to the quantity supplied? The cost of production goes down. The profit made on each item goes down. It becomes practical to produce more goods. There is no relationship between the two.

When the selling price of a good goes up, what is the relationship to the quantity supplied? The cost of production goes down. The profit made on each item goes down. It becomes practical to produce more goods. There is no relationship between the two.
When the selling price of a good goes up, what is the relationship to the quantity supplied? The cost of production goes down. The profit made on each item goes down. It becomes practical to produce more goods. There is no relationship between the two.

Solution
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Answer

It becomes practical to produce more goods. Explanation 1. Identify the Economic Principle When the selling price of a good increases, suppliers are typically more willing to produce and sell more of that good because they can earn higher profits. 2. Analyze the Options - The cost of production going down is unrelated to the selling price. - Profit per item generally increases with a higher selling price, not decreases. - Producing more goods becomes practical as higher prices lead to higher potential profits. - There is indeed a relationship between selling price and quantity supplied.

Explanation

1. Identify the Economic Principle<br /> When the selling price of a good increases, suppliers are typically more willing to produce and sell more of that good because they can earn higher profits.<br /><br />2. Analyze the Options<br /> - The cost of production going down is unrelated to the selling price.<br /> - Profit per item generally increases with a higher selling price, not decreases.<br /> - Producing more goods becomes practical as higher prices lead to higher potential profits.<br /> - There is indeed a relationship between selling price and quantity supplied.
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