The law of supply then implies that a ---the supply curve occurs due to a change in market price.
A movement along the supply curve occurs due to a change in market price.
Which of the following is consistent with the law of supply?
Part 2
A.
A reduction
of the price of salt led to a 5 percent increase
in the quantity of salt consumed.
B.
A decline in labor productivity leads to fewer apartment buildings being constructed.
C.
An increase in the market price of MP 3 players
causes an increase in the production of MP 3 players
.
D.
Fewer
passengers chose to travel by airplane after an airline disaster
.
C. An increase in the market price of MP3 players causes an increase in the production of MP3 players.
This answer is consistent with the law of supply, which states that as the price of a good or service increases, the quantity supplied by suppliers also increases.
The law of supply states that there is a direct relationship between the price of a product and the quantity of that product supplied in a market. Specifically, an increase in market price generally leads to an increase in the quantity supplied, while a decrease in market price generally leads to a decrease in the quantity supplied.
Therefore, a movement along the supply curve occurs due to a change in market price. When the price of a product changes, producers are incentivized to alter the quantity of that product they are willing and able to supply in the market, resulting in a movement along the supply curve.
The law of supply states that there is a direct relationship between the price of a good or service and the quantity supplied by producers. According to this law, when the market price of a good or service increases, the quantity supplied also increases, and vice versa.
So, to answer your question, a movement along the supply curve occurs due to a change in market price. When the price of a good or service changes, it leads to a change in the quantity supplied, causing a movement along the supply curve in response to the new price.
To understand this concept, you can plot a supply curve on a graph, with quantity supplied on the horizontal axis and price on the vertical axis. The supply curve slopes upward from left to right, indicating the positive relationship between price and quantity supplied. Any change in price will result in a movement along the supply curve. If price increases, the quantity supplied will increase, leading to an upward movement along the curve. On the other hand, if price decreases, the quantity supplied will decrease, causing a downward movement along the curve.
In summary, a change in market price causes a movement along the supply curve, as dictated by the law of supply.