Question

Which relationship is the BEST example of the Law of Supply?

A) The quantity of a good supplied rises as the price rises.
B) The quantity of a good supplied rises as the price falls.
C) The quantity of a good supplied falls as the price rises.
D) The quantity of a good supplied is not impacted by price.

Answer 1

Answer: A) The quantity of a good supplied rises as the price rises.

Explanation: This is microeconomic law states that, if everything else is equal, the quantity of a good supplied rises as the price rises. This is done to maximize profits.

Answer 2

I believe the answer is :A) The quantity of a good supplied rises as the price rises.

When the price of a certain product increased, the amount of profit that the sellers could get would increase along with it. This would make sellers become encouraged to sell that goods, and improve the total supply for the goods in the market.