The law of supply is described as the:
A) inverse relationship between price and quantity supplied.
B) direct relationship between price and quantity supplied.
C) inverse relationship between income and quantity supplied.
D) direct relationship between income and quantity supplied.

Question

Quizplus · Accepted Answer

The law of supply states that there is a direct relationship between price and quantity supplied, meaning that as the price of a good rises, the quantity supplied of that good will also increase, ceteris paribus. As the price falls, the quantity supplied will decrease. This law applies to all goods and services, assuming all other factors remain constant.

The Law of Supply Is Described as The