What is the relationship between the price of a product and the quantity supplied?(1 point)
Responses
Price and quantity supplied move in the same direction; as price decreases, quantity supplied decreases and as price increases, quantity supplied increases.
Price and quantity supplied move in the same direction; as price decreases, quantity supplied decreases and as price increases, quantity supplied increases.
There is no relationship between the price of a product and the quantity supplied.
There is no relationship between the price of a product and the quantity supplied.
Price and quantity supplied move in the opposite direction; as price increases, quantity supplied decreases and as price decreases, quantity supplied increases.
Price and quantity supplied move in the opposite direction; as price increases, quantity supplied decreases and as price decreases, quantity supplied increases.
Price and quantity supplied share an inverse relationship; as price increases, quantity supplied decreases and as price decreases, quantity supplied increases.
Price and quantity supplied share an inverse relationship; as price increases, quantity supplied decreases and as price decreases, quantity supplied increases.
Price and quantity supplied share an inverse relationship; as price increases, quantity supplied decreases and as price decreases, quantity supplied increases.
Price and quantity supplied move in the same direction; as price decreases, quantity supplied decreases and as price increases, quantity supplied increases
The correct answer is: "Price and quantity supplied share an inverse relationship; as price increases, quantity supplied decreases and as price decreases, quantity supplied increases."
To understand the relationship between the price of a product and the quantity supplied, we can look at the law of supply, which states that there is a positive relationship between price and quantity supplied. This means that as the price of a product increases, producers are willing to supply more of it, and as the price decreases, producers are willing to supply less.
This relationship can be explained by the concept of profitability. When the price of a product is higher, producers can earn more profit, which incentivizes them to increase the quantity supplied. On the other hand, when the price is lower, producers may find it less profitable to supply the product, so they decrease the quantity supplied.
Understanding the relationship between price and quantity supplied is important in economics and helps to explain the behavior of producers and the supply of goods in the market.