The law of supply states that, all else held equal, quantity supplied rises as:
A) price falls.
B) price rises.
C) income rises.
D) income falls.

Question

Quizplus · Accepted Answer

The law of supply states that quantity supplied will increase as price increases. This means that suppliers are willing to produce and sell more of a good or service as the price it can be sold at increases. As price decreases, suppliers will be less willing to produce and sell their goods, leading to a decrease in quantity supplied.

The Law of Supply States That, All Else Held Equal