Which of the following is an implication of the law of supply?

A. Changes in the price of a good leads to a shift in the supply curve.

B. Individuals will purchase fewer units at a higher price and more units at a lower price.

C. Producers will offer more units at a higher price and fewer units at a lower price.

D. Increases in money prices will lead to an increase in supply while increases in relative prices will lead to a decrease in supply.

Question

Business

Laney Wilson

16 February, 21:45

Which of the following is an implication of the law of supply?

A. Changes in the price of a good leads to a shift in the supply curve.

B. Individuals will purchase fewer units at a higher price and more units at a lower price.

C. Producers will offer more units at a higher price and fewer units at a lower price.

D. Increases in money prices will lead to an increase in supply while increases in relative prices will lead to a decrease in supply.

+1

Answers (1)

Know the Answer?

Wade Watts · Answer 1

The correct answer is option C.

Explanation:

The law of supply states that other things being constant, there is a positive relationship between quantity supplied and price of a product. This means that the price of a product and its quantity supplied change in the same direction.

At a higher price, the quantity supplied will be more and vice versa. That is why the supply curve is upward sloping.