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Which of the following is NOT an assumption of the Law of Supply?

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Question

Which of the following is NOT an assumption of the Law of Supply?

Options

  • Costs of production do not change.

  • Technology remains constant.

  • Producers expect future price increases.

  • Prices of related goods are constant.

MCQ
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Solution

Producers expect future price increases.

Explanation:

The law assumes there is no change in price expectations; producers do not anticipate future price changes.

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