The Law of Supply ______ holds for price-taking firms.

Name: The Law of Supply ______ holds for price-taking firms.
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Question

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The Law of Supply always holds for price-taking firms, which means that an increase in the price of a good or service will lead to an increase in the quantity supplied, while a decrease in price will lead to a decrease in the quantity supplied. This holds true as long as other factors like technology, input prices, and government regulations remain constant.

The Law of Supply ______ Holds for Price-Taking Firms