Which of the following statements is correct?

Question

Quizplus · Accepted Answer

According to the law of supply, when the supply increases, the price of the good falls, and the quantity of the good supplied increases. This is because, as the supply increases, there is a greater quantity of the good available in the market, leading to increased competition among sellers, which leads to a drop in the price. Moreover, producers are willing to produce more goods at higher prices, so an increase in the supply makes the production of more goods profitable.

Which of the Following Statements Is Correct