What is stated by the law of supply?
A. An increase in price will cause a reduced amount of sales.
B. An increase in quantity sold will allow a decrease in price.
C. An increase in quantity produced will decrease consumer demand.
D. An increase in price will inspire an increase in units supplied.
D. An increase in price will inspire an increase in units supplied.
D. An increase in price will inspire an increase in units supplied.
The correct answer is D. An increase in price will inspire an increase in units supplied.
To get the answer, you can understand the law of supply by considering the relationship between price and quantity supplied in the market. According to the law of supply, as the price of a good or service increases, the quantity supplied by producers also increases. This means that producers are more willing and able to supply a higher quantity of a good or service at a higher price.
In simple terms, when the price of a product increases, producers are motivated to produce and sell more of that product because they can make more profit. Therefore, option D is the correct statement according to the law of supply. An increase in price will inspire an increase in units supplied.