The fact that a fall in the price of a good results in a decrease in the quantity of the good supplied illustrates
A)the law of supply.
B)the law of demand.
C)a change in supply.
D)the nature of an inferior good.
E)technological improvement.

Question

Quizplus · Accepted Answer

The law of supply states that as the price of a good increases, the quantity supplied of that good will also increase, and as the price of a good decreases, the quantity supplied of that good will also decrease. Therefore, a fall in price leading to a decrease in quantity supplied is an illustration of the law of supply in action.

The Fact That a Fall in the Price of a Good