According to the law of supply a. when the price of a good or service increases, producers will supply more of it. b. when the price of a good or service increases, producers will supply less of it. c. when the price of a good or service decreases, producers will supply more of it. d. there is a negative relationship between the price of a good or service and the quantity producers will supply.

Question

Hassan Faulkner

Business

17 February, 08:08

According to the law of supply a. when the price of a good or service increases, producers will supply more of it. b. when the price of a good or service increases, producers will supply less of it. c. when the price of a good or service decreases, producers will supply more of it. d. there is a negative relationship between the price of a good or service and the quantity producers will supply.

+5

Answers (1)

Know the Answer?

Luna Baxter · Answer 1

There is a negative relationship between the price of a good or service and the quantity producers will supply.

Explanation.

If the prices decreases is because demand is high, which means that there're plenty products in the market, too much offer.

So, in order to attend costs, companies have to find a way to innovate and offer product in alternative markets.

That's why price of services and the quantity of producers have a negative relationship.