A change in the price of a good will cause a change in the quantity supplied.

Question

Quizplus · Accepted Answer

According to the law of supply, a change in the price of a good will cause a change in the quantity supplied, assuming all other factors remain constant. As the price of a good increases, producers will be incentivized to supply more of that good in order to take advantage of the higher price. Conversely, as the price of a good decreases, producers will be less incentivized to supply that good, resulting in a decrease in the quantity supplied.

A Change in the Price of a Good Will Cause