Question

Which of these is most likely to quikly become available in larger quantities as a result of a price increase

A.airline service
B.babysitters
C.medical doctors
D.midsize cars

Answer 1

The law of supply states that as the price of a good or service increases, the quantity supplied also increases, ceteris paribus. Therefore, it is likely that larger quantities of midsize cars will become available in the market if the price of midsize cars increases.

Step-by-step explanation:

In economics, the law of supply states that as the price of a good or service increases, the quantity supplied also increases, ceteris paribus (all other factors remaining constant). Therefore, if the price of midsize cars increases, it is likely that larger quantities of midsize cars will become available in the market.

For example, if the price of midsize cars rises from $20,000 to $22,000, the quantity supplied of midsize cars might increase from 18 million cars to 20 million cars. This is because car manufacturers are motivated to supply more cars at a higher price, as it increases their revenue and profit margin.

It is important to note that this analysis assumes ceteris paribus, meaning that no other factors such as production costs or government regulations significantly impact the supply of midsize cars.