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What relationship does the Law of Supply show?

A. An inverse relationship between prices and supply
B. A direct relationship between price and supply
C. An inverse relationship between price and quantity supplied
D. A direct relationship between price and quantity supplied
E. no relationship between price and quantity supplied

User StackMonk
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1 Answer

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Final answer:

The Law of Supply shows an inverse relationship between price and quantity supplied (option C).

Step-by-step explanation:

It is important to note that the Law of Supply is a fundamental concept in economics and helps explain the relationship between price and quantity supplied. However, it is not the only factor influencing supply. Other factors, such as changes in production costs or government regulations, can also affect the quantity supplied at a given price.

It states that as the price of a good or service increases, the quantity supplied by producers decreases, while a lower price leads to a higher quantity supplied. This relationship is based on the assumption that all other factors affecting supply remain constant

The answer is option ⇒c

User Aoles
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