The law of supply states that holding everything else constant:

Question

Quizplus · Accepted Answer

The law of supply states that as the price of a good increases, the quantity supplied by producers will also increase, holding everything else constant. This is because producers are willing to supply more at higher prices as it results in higher profits. Therefore, option A is the correct choice. Option B is incorrect as it does not relate to the concept of supply. Option C is partially correct, as producers do respond to profits, but it does not fully encompass the concept of supply. Option D is incorrect as it contradicts the law of supply.

The Law of Supply States That Holding Everything Else Constant