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Question
Microeconomics
Posted 8 months ago
Which of the following best describes the law of supply?
Choose 1 answer:
(A) As price increases, quantity supplied increases.
(B) Sellers set the price that demanders pay.
(c) Supply is infinite.
D Producers sell the same amount of a good no matter its price.
(E) Legal authorities regulate markets.
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Answer from Sia
Posted 8 months ago
Solution
a
Law of Supply: 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
b
Answer Identification: Among the given options, the one that best describes the law of supply is: (A) As price increases, quantity supplied increases
Answer
(A) As price increases, quantity supplied increases.
Key Concept
Law of Supply
Explanation
The law of supply indicates a direct relationship between price and quantity supplied. As prices rise, producers are willing to supply more of the good to the market.
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