All else being equal, if the law of supply states that as the price of a good, service, or resource rises rev: 05_02_2018 Multiple Choice the quantity demanded will decrease, which explains the shape of the supply curve. the quantity demanded will increase, which explains the shape of the supply curve. the quantity supplied will decrease, which explains the shape of the supply curve. the quantity supplied will increase, which explains the shape of the supply curve.

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1 December, 04:52

All else being equal, if the law of supply states that as the price of a good, service, or resource rises rev: 05_02_2018 Multiple Choice the quantity demanded will decrease, which explains the shape of the supply curve. the quantity demanded will increase, which explains the shape of the supply curve. the quantity supplied will decrease, which explains the shape of the supply curve. the quantity supplied will increase, which explains the shape of the supply curve.

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Shiloh Leon · Answer 1

The quantity supplied will increase, which explains the shape of the supply curve

Explanation:

This is a law of supply that illustrates a direct relationship between price and quantity. It goes further to show that quantity reacts in the same direction as price. A fall in price causes a fall in supply and a rise in price activate a rise in supply with aim of taking the advantage of increased price to make a higher profit.

The positive relationship shared among the two causes the upward slope of the supply curve.

Finn · Answer 2

The quantity supplied will increase which explains the shape of the supply curve

Explanation:

There is a positive direct correlation between price and quantity supplied. When the price of a commodity increases, producers are motivated to increase the supply of their commodities in order to earn higher prices. Similarly, when the price of the commodity falls, producers will supply less of the commodity since the commodity will be less profitable.