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29 Oct 2020
The law of ____states that the quantity supplied is directly related to the price at which the goods are supplied, keeping everything else constant.
The law of ____states that the quantity supplied is directly related to the price at which the goods are supplied, keeping everything else constant.
Paramjeet ChawlaLv8
29 Oct 2020
Related textbook solutions
Related questions
a. State the law of supply.
| Quantity supplied rises as price increases, other things are constant. Quantity supplied falls as price decreases, other things are constant. | |
| Supply increases as price falls. Supply decreases as price rises. | |
| Supply increases as price increases. Supply decreases as price decreases. | |
| Quantity supplied rises as price falls, other things constant. Quantity supplied falls as price increases, other things are constant. |
b. Why is price directly related to quantity supplied?
| As price rises, consumers substitute other goods whose price has not risen. | |
| As price rises, suppliers rearrange their activities to supply more of that good to take advantage of the higher price. | |
| As price falls, suppliers rearrange their activities to supply more of that good to take advantage of the lower price. | |
| As price rises, suppliers rearrange their activities to supply more of a substitute good to take advantage of the higher price. |
