According to the text, firms encounter rising costs when they attempt to produce more in the same time period. As a consequence, they must be offered a higher price to be willing to incur these higher costs. The resulting relationship between price and quantity supplied is

A. direct (or positive) and is called the law of demand.

B. inverse (or negative) and is called the law of supply.

C. direct (or positive) and is called the law of human nature.

D. direct (or positive) and is called the law of supply.

Question

Luka Cortez

Business

2 November, 09:17

According to the text, firms encounter rising costs when they attempt to produce more in the same time period. As a consequence, they must be offered a higher price to be willing to incur these higher costs. The resulting relationship between price and quantity supplied is

A. direct (or positive) and is called the law of demand.

B. inverse (or negative) and is called the law of supply.

C. direct (or positive) and is called the law of human nature.

D. direct (or positive) and is called the law of supply.

+5

Answers (1)

Know the Answer?

Albert Potts · Answer 1

D. direct (or positive) and is called the law of supply.

Explanation:

According to the law of supply, when the price of product is increases, then the quantity supplied of that product would also increases and if the price of product is decreases, then the quantity supplied of that product would also decreases. That means it shows a direct or positive relationship between the price and the quantity supplied keeping other factor constant i. e they do not changed.