When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

Name: When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.
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Question

Quizplus · Accepted Answer

When the price of a good is low, it is generally less profitable for producers to sell the good, leading to a smaller quantity supplied. Producers are more willing to supply more of a good when its price is higher, as it increases profitability.

When the Price of a Good Is Low, Selling the Good