which of the following is consistent with the law of supply?\na. a decline in labor productivity leads to…

which of the following is consistent with the law of supply?\na. a decline in labor productivity leads to fewer apartment buildings being constructed.\nb. an increase in the market price of mp3 players causes an increase in the production of mp3 players.\nc. fewer passengers chose to travel by airplane after an airline disaster.\nd. a reduction of the price of salt led to a 5 percent increase in the quantity of salt consumed.

which of the following is consistent with the law of supply?\na. a decline in labor productivity leads to fewer apartment buildings being constructed.\nb. an increase in the market price of mp3 players causes an increase in the production of mp3 players.\nc. fewer passengers chose to travel by airplane after an airline disaster.\nd. a reduction of the price of salt led to a 5 percent increase in the quantity of salt consumed.

Answer

Brief Explanations:

The law of supply states that, ceteris paribus, as the price of a good rises, the quantity supplied of that good rises, and as the price of a good falls, the quantity supplied of that good falls. Option B shows that an increase in the market price of MP3 players causes an increase in their production (quantity supplied), which is consistent with the law of supply. Option A is about productivity and quantity constructed, not price - supply relationship. Option C is about demand affected by an airline disaster. Option D is about the relationship between price and quantity consumed (demand), not supply.

Answer:

B. An increase in the market price of MP3 players causes an increase in the production of MP3 players