Question

0 2 2 AOOOO 10

According to the law of supply, price and quantity move
O
O
O
O
along a track in the same direction.
along a track in opposite directions.
from different points toward one another.
from the same point away from one another.

Answer 1

Answer: A. along a track in the same direction

Step-by-step explanation:

edge

Answer 2

along a track in the same direction.

Step-by-step explanation:

As per the law of supply, an increase in price leads to an increase in the quantity supplied. At high prices, producers will have a bigger margin resulting in higher profits. High prices motivate firms to produce more as they are assured of profits.

A decrease in prices means reduced margins and profits. Firms are likely to cut down productions as profitability is not guaranteed. Quantity supplied, therefore, moves in the same direction as the price.