The law of supply states that there is a positive relationship between price and quantity supplied, ceteris paribus.

Question

Quizplus · Accepted Answer

The law of supply states that as the price of a good or service increases, the quantity supplied by producers also increases, assuming all other factors remain constant. Therefore, there is a positive relationship between price and quantity supplied, which is the basic premise of the law of supply.

The Law of Supply States That There Is a Positive