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The law of supply explains:

a) a negative relationship between price and the quantity demanded.
b) the negative relationship between price and quantity supplied
c) the positive relationship between price and quantity demanded.
d) the positive relationship between price and quantity supplied

1 Answer

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Final answer:

The law of supply exhibits a positive relationship between price and quantity supplied, meaning higher prices lead to a higher quantity supplied.

Step-by-step explanation:

The law of supply is a fundamental principle in economics that describes the common relationship between the price of a good or service and the quantity that producers are willing to supply. According to this law, there is a direct, or positive relationship between price and quantity supplied, meaning that as the price increases, the quantity supplied also increases, and vice versa, while all other factors are held constant. Therefore, the correct answer to the question is: d) the positive relationship between price and quantity supplied.

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