Asked by jahdazhi florez on Sep 24, 2024
Verified
The law of supply states that,holding other factors constant,as price increases
A) Quantity supplied increases
B) Quantity supplied decreases
C) Quantity demanded increases
D) Quantity demanded decreases
Law of Supply
An economic principle stating that as the price of a good increases, suppliers will produce more of it, and as the price decreases, they will produce less.
Quantity Supplied
The total amount of a product that producers are willing and able to sell at a given price over a specified period.
Quantity Demanded
The total amount of a good or service that consumers are willing to purchase at a given price.
- Acquire knowledge on the fundamentals of supply and demand and how variations in these elements affect prices in the market.
Verified Answer
YS
Yovani Saavedraabout 6 hours ago
Final Answer :
A
Explanation :
The law of supply states that as price increases, quantity supplied increases, holding other factors constant. This is because suppliers are willing to sell more of a good or service as the price increases, which increases their profits. Conversely, if the price decreases, suppliers are less willing to sell, leading to a decrease in quantity supplied.
Learning Objectives
- Acquire knowledge on the fundamentals of supply and demand and how variations in these elements affect prices in the market.