156090
AssignmentMultiple Choice

Applying Economics to World History

Question 156090 • FL-2109010-M/J World History A - Teacher Directed Resource

How would the change in iron’s value affect its supply?

Answer
A
Higher prices would encourage producers to increase supply.
B
Lower prices would decrease demand.
C
The price would increase and the demand would decrease.
D
The price would decrease and the supply would increase.

Explanation

When iron’s value (price) rises, producing and selling it becomes more profitable. Producers are therefore encouraged to make and offer more iron, so its supply increases. Lower demand, as described in choice B, does not answer how a change in value affects supply.

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