The law of supply implies that supply curves are _____, and the law of demand implies that demand curves are ____.

Question

Quizplus · Accepted Answer

The law of supply states that as the price of a good or service increases, the quantity supplied increases, and as the price decreases, the quantity supplied decreases, leading to an upward sloping supply curve. The law of demand states that as the price of a good or service increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases, leading to a downward sloping demand curve.

The Law of Supply Implies That Supply Curves Are _____