In most cases, the supply of input factors responds positively to price.

Name: In most cases, the supply of input factors responds positively to price.
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Question

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When the price of input factors increases, firms are more willing to supply more of these factors as it increases their profits. This is known as the law of supply, which states that as the price of a good increases, the quantity supplied of that good increases as well.

In Most Cases, the Supply of Input Factors Responds Positively