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According to the law of supply, what happens to the quantity supplied when prices go up?

It increases.
It decreases.
It is unchanged.
It is variable.

1 Answer

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Answer:

According to the law of supply, when the price of a good or service increases, the quantity supplied also increases. This means that producers are willing and able to supply more of the good or service at a higher price, as they can earn more revenue and profit from each unit sold. Conversely, when the price of a good or service decreases, the quantity supplied also decreases, as producers are less willing and able to produce and sell the good or service at a lower price. This relationship between price and quantity supplied is known as the law of supply.

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