work incentive assignment before question completed: 54 of 116 my score: 51.67/116 pts (44.54%) which of the…

work incentive assignment before question completed: 54 of 116 my score: 51.67/116 pts (44.54%) which of the following is consistent with the law of supply? a. fewer passengers chose to travel by airplane after the terrorist strikes of 9/11. b. the state of california has less grape regulation than new york, and grape production is lower in new york. c. an increase in the market price of mp3 players causes an increase in the production of mp3 players. d. a reduction of the price of salt, led to a 5 percent increase in the quantity of salt consumed.

work incentive assignment before question completed: 54 of 116 my score: 51.67/116 pts (44.54%) which of the following is consistent with the law of supply? a. fewer passengers chose to travel by airplane after the terrorist strikes of 9/11. b. the state of california has less grape regulation than new york, and grape production is lower in new york. c. an increase in the market price of mp3 players causes an increase in the production of mp3 players. d. 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, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice - versa. Option C shows that an increase in the market price of MP3 players causes an increase in their production, which is in line with the law of supply. Option A is about demand change due to non - price factor (terrorist strikes). Option B is about the impact of regulation on production. Option D is about the law of demand (price reduction leads to quantity demanded increase).

Answer:

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