Which statements are true according to the law of supply?

1.) A decrease in demand leads to an increase in supply.

2.) A decrease in demand leads to a decrease in supply.

3.) An increase in price leads to a decrease in supply.

4.) A decrease in price leads to a decrease in supply.

5.) An increase in price leads to an increase in supply.

Question

Denzel Vaughn

Business

30 August, 07:43

Which statements are true according to the law of supply?

1.) A decrease in demand leads to an increase in supply.

2.) A decrease in demand leads to a decrease in supply.

3.) An increase in price leads to a decrease in supply.

4.) A decrease in price leads to a decrease in supply.

5.) An increase in price leads to an increase in supply.

+2

Answers (2)

Know the Answer?

Tristin · Answer 1

the statements that are true according to the law of supply are: - A decrease in price leads to a decrease in supply. - An increase in price leads to an increase in supply. Increase in price encourage producer to sell more because it make them gain more profit, which lead in the increase in supply.

Yamilet Raymond · Answer 2

I believe the answer is:

-A decrease in price leads to a decrease in supply.

-An increase in price leads to an increase in supply.

As the price of a product fall down, the amount of profit that the sellers would get for selling the product would also fall. This would cause them to decrease the amount of supply so they can produce more profitable happen. The exact opposite happen when the price of the product rises.