Which of the following best describes the law of supply?

Choose 1 answer:
(A) Supply is infinite.
(B) Legal authorities regulate markets.
(c) Sellers set the price that demanders pay.
(D) As price increases, quantity supplied increases.
(E) Producers sell the same amount of a good no matter its price.

Question

Which of the following best describes the law of supply?

Choose 1 answer:
(A) Supply is infinite.
(B) Legal authorities regulate markets.
(c) Sellers set the price that demanders pay.
(D) As price increases, quantity supplied increases.
(E) Producers sell the same amount of a good no matter its price.

Accepted Answer

∻Solution by Steps∻ ‖ step 1 ⋮ Identify the correct statement that describes the law of supply from the given options. ‖ ‖ step 2 ⋮ The law of supply states that, all else being equal, an increase in price results in an increase in the quantity supplied. ‖ ‖ step 3 ⋮ Match the statement that aligns with the law of supply from the options provided in the OCR model's understanding of the image. ‖ ∻Answer∻ ***D*** ∻Key Concept∻ ⚹Law of Supply⚹ ∻Explanation∻ ⚹The law of supply indicates that there is a direct relationship between price and quantity supplied, meaning as the price of a good or service increases, the quantity of goods or services that suppliers are willing to supply also increases, ceteris paribus (all other factors being held constant).⚹◊What is the probability of selecting the correct answer to the multiple-choice question by random guessing⍭ Generate me a similar question◊

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