The law of supply:

shows that the relationship between producer revenue and quantity supplied is negative.

is reflected in a downsloping supply curve.

reflects the amounts that producers will want to offer at each price in a series of prices.

reflects the income and substitution effects of a price change.

Question

Cheyanne Salazar

Business

30 August, 12:30

The law of supply:

shows that the relationship between producer revenue and quantity supplied is negative.

is reflected in a downsloping supply curve.

reflects the amounts that producers will want to offer at each price in a series of prices.

reflects the income and substitution effects of a price change.

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Answers (1)

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Jaqueline Stout · Answer 1

The law of supply reflects the amount that producers will want to offer at each price in a series of prices.

Explanation:

The law of supply determines that the quantity offered of a good increases as its price increases, keeping the remaining variables constant. The quantity offered is directly proportional to the price.

Specifically, it determines the amount of a particular good or service that is offered by the producers taking into account its price. Usually the relationship between this quantity and the price variable will be direct or positive, unlike in the demand law.