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Question
Microeconomics
Posted 17 days ago

Which of the following best describes the law of supply?
Choose 1 answer:
(A) Sellers set the price that demanders pay.
(B) Producers sell the same amount of a good no matter its price.
(c) As price increases, quantity supplied increases.
(D) Legal authorities regulate markets.
(E) Supply is infinite.
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Answer from Sia
Posted 17 days ago
Solution
a
Law of Supply: The law of supply states that, all else being equal, an increase in the price of a good will result in an increase in the quantity supplied
Answer
(C) As price increases, quantity supplied increases.
Key Concept
Law of Supply
Explanation
The law of supply indicates that producers are willing to supply more of a good as its price rises, assuming other factors remain constant. This is because higher prices can lead to higher potential revenue and profit for producers.

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