Sia
Question
Statistics
Posted 10 months ago
According to the law of supply, what happens when the price of a good increases?
Choose 1 answer:
(A) The quantity supplied increases.
(B) The supply curve shifts to the left.
(c) People are willing to buy what is supplied.
(D) The supply curve shifts to the right.
(E) The supply curve flattens out.
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Answer from Sia
Posted 10 months ago
Solution by Steps
step 1
To address the question, we need to understand the law of supply in economics
step 2
The law of supply states that, all else being equal, an increase in the price of a good will result in an increase in the quantity supplied
step 3
This relationship is reflected in the movement along the supply curve, not a shift of the supply curve itself
Answer
The correct answer is that the quantity supplied increases.
A
Key Concept
Law of Supply
Explanation
According to the law of supply, when the price of a good increases, the quantity supplied increases, which is a movement along the supply curve.
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