Question

Jack sells homemade chocolates and cookies. He expects the price of chocolates to increase around Valentine’s Day, so he prepares to make more chocolates in February. Which economic concept lies behind Jack’s decision to make more chocolates in February? A. equilibrium B. law of demand C. law of supply D. negative externality E. positive externality

Answer 1

C. law of supply

Step-by-step explanation:

Law of supply is when an increase in price results in an increase in quantity supplied. Jack knows the price of chocolate will increase so he prepares more chocolate. I took the post-test and got 16/16.

Answer 2

B. law of deman

Step-by-step explanation:

The economic law that bases the choice of increasing production of Jack's chocolates due to Valentine's Day is the law of demand. In microeconomics theory, the law of demand consists in increasing production in the face of increased demand. Faced with increased demand, producers tend to expect to maximize their profits by increasing production (and supply), just as Jack's chocolates produced.