In which statement(s) is "supply" used correctly? (I) "An increase in the price of eggs will increase the supply of eggs."
(II) "As the cost of producing eggs rises, the supply of eggs will tend to fall."

Question

Quizplus · Accepted Answer

In statement I, "supply" is used incorrectly. An increase in price will lead to an increase in the quantity supplied, but not an increase in supply.

In statement II, "supply" is used correctly. As the cost of production goes up, producers will be less willing/able to supply eggs, causing a decrease in supply.

In Which Statement(s) Is "Supply" Used Correctly? (I) "An Increase