19
QuizMultiple Choice

The Law of Supply

Question 19 • RAIL NCAA OC Economics 2027

Which best explains why the law of supply operates the way it does in a free enterprise economy?

Answer
A
Companies want to produce more goods than their rivals.
B
Companies want to reward loyal consumers with low prices.
C
Companies want to hire as many workers as possible.
D
Companies want to be as profitable as possible.

Explanation

The law of supply says that, as the price of a good rises, producers are generally willing to supply more of it. Higher prices can make producing and selling additional units more profitable, motivating companies to increase production. Therefore, the best explanation is that companies want to be as profitable as possible.

AI-written and checked against the verified answer.

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