Which statement explains the relationship between price and the quantity supplied?

Question

Quizplus · Accepted Answer

This statement is known as the law of supply, which states that as the price of a good or service increases, the quantity supplied of that good or service will also increase, ceteris paribus. This means that firms are willing to increase output, even as production costs rise, if they can sell the product at a higher price, and therefore increase profits. Conversely, if the price of the good or service decreases, firms will supply less of it, as it becomes less profitable to produce.

Which Statement Explains the Relationship Between Price and the Quantity