BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -An increase in price almost always leads to an increase in the quantity supplied of that good or service, while a decrease in price will decrease the quantity supplied.

Detailed explanation-2: -The law of supply states that there is a direct relationship between price and quantity supplied. In other words, when the price increases the quantity supplied also increases.

Detailed explanation-3: -If the price of a good falls, the quantity demanded of that good increases. The relationship between the quantity demanded and the price of a good when all other influences on buying plans remain the same. Demand is a list of quantities at different prices and is illustrated by the demand curve.

Detailed explanation-4: -When supply increases, it results in an excess supply at the earlier equilibrium price. So there will be competition among sellers, which reduces the price. Price fall leads to a rise in demand and fall in supply. These changes will continue until the new equilibrium is established.

Detailed explanation-5: -Factors that can cause a decrease in supply include higher production costs, producer expectations and events that disrupt supply. Higher production costs make supplying a product less profitable, resulting in firms being less willing to supply the good.