Which of the following demonstrates the law of supply?

Question

Quizplus · Accepted Answer

This choice demonstrates the law of supply because it shows that when the price of a good (in this case, leather belts) increases, sellers are willing to increase the quantity they supply to the market in order to take advantage of the higher price and make more profit. This is a fundamental concept of the law of supply.

The other choices do not demonstrate the law of supply as effectively. B talks about an increase in supply due to technology, but does not mention anything about the price of the good changing. C talks about a decrease in current supply due to an expectation of higher future prices, which is not a typical application of the law of supply. D talks about a decrease in quantity supplied due to a price increase, which is the opposite of the typical relationship predicted by the law of supply.

Which of the Following Demonstrates the Law of Supply