Questions and Answers
How does an increase in price affect the quantity supplied according to the law of supply?
It leads to an increase in the quantity supplied
What does the law of supply describe?
The direct relationship between price and quantity supplied
What factor influences the quantity supplied according to the law of supply?
Production costs
Study Notes
Law of Supply
- An increase in price leads to an increase in the quantity supplied, according to the law of supply.
- The law of supply describes the direct relationship between the price of a good and the quantity supplied.
- A change in price is the factor that influences the quantity supplied, according to the law of supply.
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