Question

1.

When plotting a demand curve for the price of bottled soda, what is assumed to be constant according to ceteris paribus?

Select the two correct answers below.

Select all that apply:

• the price of a bottled sports drink

• the price of a bottle of soda

• the costs of production of bottled soda

• the quantity of bottles of soda supplied

2.

According to the law of supply, a higher rate of return __________ the quantity supplied of financial capital.

Select the correct answer below:

a. increases

b. decreases

c. does not affect

d. it is impossible to know

Answer 1

1. Option 2 and 3.

While drawing a demand curve, the current price and costs of production would not change

2. Option a

Higher rate of return and quantity of financial capital supplied are directly related, as people would expect more returns