The Law of Supply states that when the market price ______,the profit-maximizing sales quantity for a price taking-firm never ______.

Question

Quizplus · Accepted Answer

The Law of Supply suggests that as the market price increases, the quantity supplied by firms also increases because higher prices typically make selling more profitable, thus firms are willing to supply more. Therefore, when the market price increases, the profit-maximizing sales quantity for a price-taking firm never decreases.

The Law of Supply States That When the Market Price