Which of the following indicates that the law of supply applies to makers of soda?
A) An increase in the price of a soda leads to an increase in the demand for soda.
B) An increase in the price of a soda leads to an increase in the supply of soda.
C) An increase in the price of a soda leads to an increase in the quantity of soda supplied.
D) A decrease in the price of a soda leads to an increase in the quantity of soda demanded.
E) A decrease in the price of a soda leads to an increase in the supply of soda.

Question

Quizplus · Accepted Answer

The law of supply states that as the price of a good increases, the quantity of that good supplied will also increase. Choice C, which states that an increase in the price of soda leads to an increase in the quantity of soda supplied, reflects this principle and indicates that the law of supply applies to makers of soda. Choices A, B, D, and E either do not apply or are contrary to the law of supply.

Which of the Following Indicates That the Law of Supply