The positive relationship between price and quantity supplied, other things being equal, is considered to be
A)universally true for all markets.
B)never true in heavily regulated markets.
C)sometimes true in all markets.
D)true only in market-based economies.
E)true only when consumers act irrationally.

Question

Quizplus · Accepted Answer

The positive relationship between price and quantity supplied, other things being equal, is a fundamental principle of economics, known as the law of supply. This principle states that as the price of a good or service increases, the quantity of goods or services that suppliers are willing to produce and sell generally increases, and vice versa, assuming all other factors are held constant. This relationship is considered to be universally true across different types of markets, not limited by the level of market regulation or the type of economy.

The Positive Relationship Between Price and Quantity Supplied, Other Things