according to the law of supply the higher the price
A the more consumers are willing to pay
B the larger the quantity produced
c the smaller the quantity produced
D the more the availability of a good is reduced
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What’s the answer
According to the law of supply, the higher the price of a good or service, the larger the quantity that producers are willing to supply. This relationship occurs because higher prices incentivize producers to increase their production in order to take advantage of the potential for higher profits. So, the correct answer would be B: the larger the quantity produced.
To understand this concept, you can refer to the basic principle of supply and demand. When the price of a good or service increases, it means that consumers are willing to pay more for that particular item. As a result, producers perceive this as an opportunity to make higher profits, leading them to increase their production to fulfill the increased demand and benefit from the higher prices.
Conversely, when the price of a good is low, producers may be less motivated to produce more of it because the potential for profits is lower compared to other goods or services. This is why the quantity produced is usually smaller when the price is lower, which is not applicable in the context of the law of supply.
Remember, the law of supply focuses on the relationship between the price of a good and the quantity that producers are willing to supply, based on their profit-maximizing behavior.