Q12. the "law of supply" refers to the fact that, all other things remaining the same, when the price of a good rises a.the supply curve shifts leftward. b.the supply curve shifts rightward. c.there is a movement up along the supply curve to a larger quantity supplied. d.there is a movement down along the supply curve to a smaller quantity supplied.

Supply is the amount of specific goods and services that are available in the market to the consumers. The law of supply states that a higher price leads to increase in the quantity being supplied by producers or suppliers and a lower price leads to a lower quantity supplied. In this case when price of goods rises while maintaining other things constant, there is a movement up along the supply curve to a larger quantity supplied.

1) Decrease

Explanation:

The gross profit margin ratio is a profitability ratio that basically shows us how well the company is using its assets to cover its production costs. It is calculated by subtracting total revenue from cost of goods sold and then dividing by total revenue:

gross margin ratio = (total revenue - COGS) / total revenue

As any ratio, it doesn't tell anything by itself but it is very useful when comparing different companies that operate in the same industry. It basically tells us how profitable our business is when only required to cover production costs (COGS). It is always used together with the net profit margin because it will tell us where the company is spending the most.

If the company has a very good (high) gross profit ratio but a very low net profit ratio, it means that fixed costs are probably too high.