Question

According to the law of supply, if the price of cars decreases, what will happen to the quantity of cars supplied? Please choose the correct answer from the following choices, and then select the submit answer button. The quantity supplied will decrease. The quantity supplied will be unaffected by this event. The quantity supplied will increase. The quantity supplied will either rise or fall, depending on other factors. Need help on this question?

Answer 1

Answer:The quantity supplied will decrease

Step-by-step explanation:

The quantity supplied will be decreased.

As the law of supply states if the Price of a commodity increase then the number of goods and services will also increase in the market keeping all other factors of production equal.

In this case Price of cars decreases, therefore, its quantity will also decrease keep the cost of factors of production being equal.