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Supply and Demand: Tutorial

17 of
Part B
What is the relationship
between the price and the number of necklaces Rachael supplies?

User Wizbcn
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2 Answers

7 votes

Answer: As the price goes up, the number of necklaces she supplies goes up.

Explanation: edmentum / plato

User Sergey Neskoromny
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4 votes

Answer:

see below

Step-by-step explanation:

There exists a direct relationship between the price of a commodity and the quantity supplied. Producers find it more profitable to increase supplier when the prices are high. As businesses are motivated by profits, high prices are likely to generate more profits. High prices are a motivation to supply large quantities.

If the price of necklaces goes up, Rachel will supply more to the markets. She will take advantage of the high prices to sell more and make bigger profits. Low prices lead to reduced profits or even losses. At low prices, Rachael will supply a few necklaces in the market.

User Vikram Biwal
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