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.

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24 February, 14:23

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.

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Answers (1)

Know the Answer?

Brycen Bowman · 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.