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Quantity supply increases as the price decreases.

User DEarTh
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1 Answer

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10 votes

No, the quantity supplied generally decreases as the price decreases. According to the Law of Supply, there is a positive relationship between the price of a good or service and its quantity supplied, which means that as the price increases, the quantity of the good or service that producers are willing and able to supply also increases. Conversely, as the price decreases, the quantity of the good or service that producers are willing and able to supply decreases. This relationship holds because producers are motivated to produce and sell more of a good or service when they can get a higher price for it. The relationship between price and quantity supplied is usually depicted on a graph as an upward-sloping curve, with the price on the y-axis and the quantity supplied on the x-axis.

User EarlGrey
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