Question

A principle in economics that states that as the price of a good, service, or resources rises, the quantity supplied will increase, & vice versa, all else held constant.

Answer 1

The law of supply in economics states that as the price of a good, service, or resource rises, the quantity supplied will increase, and vice versa.

Step-by-step explanation:

The subject of this question is Economics.

The law of supply states that as the price of a good, service, or resource rises, the quantity supplied will increase, and vice versa, assuming all other factors are held constant.

For example, if the price of gasoline rises, it encourages firms to take actions such as expanding oil exploration, drilling for more oil, and investing in pipelines and oil tankers. This leads to an increase in the quantity supplied of gasoline.