The law of supply states that there is a
--- relationship between the price and
the---.
The law of supply states that there is a direct relationship between the price and the quantity supplied.
he law of supply states that there is a
positive
relationship between the price and
the quantity supplied
.
Part 2
Thus, as the price decreases
,
A.
the demand decreases
.
B.
the quantity produced by firms decreases
.
C.
the quantity demanded decreases
.
D.
the supply decreases
.
B. the quantity produced by firms decreases.
According to the law of supply, as the price of the good decreases
,
it causes
A.
a shift of the supply curve to the right
.
B.
a movement upward
along the supply curve.
C.
a shift of the supply curve to the left
.
D.
a movement downward
along the supply curve.
C. a shift of the supply curve to the left.
The law of supply states that there is a positive relationship between the price and the quantity supplied.
The law of supply states that there is a direct relationship between the price of a product and the quantity of that product that suppliers are willing to offer for sale. As the price of a product increases, suppliers are generally willing to supply more of that product, and as the price decreases, suppliers are generally willing to supply less.
To understand the law of supply, you can look at the behavior of suppliers in the market. A common way to represent this relationship is using a supply curve, which is a graphical representation of the quantities of a product that suppliers are willing to supply at different prices. This curve typically slopes upward from left to right, indicating that as the price of a product increases, the quantity supplied also increases.
This relationship is driven by various factors such as production costs, technology, resource availability, and expectations. As the price of a product increases, it becomes more profitable for suppliers to produce and sell it, motivating them to increase their supply. On the other hand, if the price decreases, suppliers may find it less profitable to produce and sell the product, leading to a decrease in supply.
Overall, understanding the law of supply helps in analyzing how changes in price can affect the quantity supplied in a market and how suppliers respond to these price changes.