The law of supply states that price and quantity supplied are
A) inversely related,ceteris paribus.
B) directly related,ceteris paribus.
C) not related.
D) fixed.

Question

Quizplus · Accepted Answer

The law of supply states that there is a direct relationship between price and quantity supplied, ceteris paribus. This means that as the price of a good or service increases, the quantity supplied by producers will also increase, and vice versa. This relationship is based on the assumption that all other factors affecting supply, such as input costs, technology, and government regulations, remain constant.

The Law of Supply States That Price and Quantity Supplied