The Law of Supply states that price and
A)Supply are positively related
B)Quantity supplied are positively related
C)Supply are negatively related
D)Quantity supplied are negatively related
E)Quantity demanded are negatively related

Question

Quizplus · Accepted Answer

The Law of Supply states that there is a direct or positive relationship between the price of a good and the quantity of that good supplied in the market. As the price of a good increases, the quantity of that good supplied by producers also increases. This is because producers are incentivized to supply more of a good at higher prices, as it leads to higher profits. Therefore, price and quantity supplied are positively related.

The Law of Supply States That Price and