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10 June, 20:37

Which of the following is an example of the law of supply?1. The price of gum has increased so producers are making more gum. 2. Producers provide less of a good when the price increases. 3. The amount of a good purchased increases when the price decreases. 4. The price of labor has increased and producers decrease supply.

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  1. 10 June, 21:20
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    Option 1 is correct.

    Explanation:

    Law of supply indicates that there is a positive relationship between the price of a commodity and the quantity supplied of that commodity. This means that an increase in the price of a commodity then as a result there is an increase in the quantity supplied of that commodity because it will become more profitable for the producers to produce more and supply more.
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