Question

Holding everything else constant, producers are willing to offer more units for sale when the price at which they can sell their product increases. This concept is known as the:

A. profit-maximizing condition.
B. law of supply.
C. law of one price.
D. maximal output

Answer 1

The concept described in the question is known as the law of supply. When the price at which producers can sell their product increases, they are willing to offer more units for sale.

Step-by-step explanation:

The concept described in the question is known as the law of supply. According to the law of supply, when the price at which producers can sell their product increases, they are willing to offer more units for sale. This relationship holds true when all other variables, such as costs and production capacity, are held constant.