The law of supply states that other things being equal

Question

Quizplus · Accepted Answer

The law of supply states that there is a direct relationship between price and quantity supplied, i.e. as price increases, quantity supplied will also increase, other things being equal. Therefore, option C is the correct choice. Option A is an incorrect statement, as it refers to Say's law of markets, which is a different economic concept. Option B is partially correct, as productivity can impact supply, but it is not a direct application of the law of supply. Option D is also incorrect, as the law of supply does not refer to meeting demand, but rather to the relationship between price and quantity supplied.

The Law of Supply States That Other Things Being Equal