Asked by Mathu Vicky on Jul 04, 2024
Verified
According to the law of supply, there is a
A) negative relationship between price and the quantity of a good supplied.
B) positive relationship between price and the quantity of a good supplied.
C) negative relationship between price and the change in supply.
D) positive relationship between price and the change in supply.
Law of Supply
A principle stating that as the price of a good increases, the quantity supplied also increases, and vice versa.
Quantity Supplied
The total amount of a good or service that producers are willing and able to sell at a specific price.
- Define the law of supply and its implications.
Verified Answer
BH
Bryant HernandezJul 06, 2024
Final Answer :
B
Explanation :
The law of supply states that there is a direct (positive) relationship between the price of a good and the quantity of it that producers are willing to supply. As prices increase, suppliers are willing to produce more, and as prices decrease, they are willing to produce less.
Learning Objectives
- Define the law of supply and its implications.