Which of the following satisfy the law of supply? Select the two correct answers.
a
A decrease in price is followed by a decrease in supply.
b
A decrease in price is followed by a decrease in quantity supplied.
c
An increase in price is followed by an increase in supply.
d
An increase in price is followed by an increase in quantity supplied.
e
A increase in price is followed by a decrease in quantity supplied.
c and d are the correct answers.
The correct answers that satisfy the law of supply are:
c - An increase in price is followed by an increase in supply.
d - An increase in price is followed by an increase in quantity supplied.