A fall in the price of a good causes producers to reduce the quantity of the good they are willing to produce. This fact illustrates

Question

Quizplus · Accepted Answer

This statement illustrates the law of supply, which states that there is a direct relationship between price and quantity supplied. As the price falls, producers will be willing to supply less of the good, since their profit margin will decrease. This is a basic principle of supply and demand in the market.

A Fall in the Price of a Good Causes Producers