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Which economic principle states that producers will offer more of a specific good at higher prices than they were at lower prices?

a) Law of Diminishing Marginal Utility
b) Law of Supply
c) Law of Demand
d) Law of Equilibrium

User Marto
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1 Answer

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Final answer:

The Law of Supply states that producers will offer more of a good at higher prices than at lower prices, with the relationship between price and quantity supplied being directly proportional.

Step-by-step explanation:

The economic principle that states producers will offer more of a specific good at higher prices than they would at lower prices is the Law of Supply. According to this principle, as the price of a good increases, providers are more willing to produce more because they can earn higher revenues, which can cover the higher costs of production and potentially result in greater profit. This relationship assumes other factors remain constant and does not take into account the point at which higher costs might deter further production. It's a fundamental concept in economics and essential for understanding market behavior.

User Kizu
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