ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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price and quantity supplied are directly related
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price and quantity supplied are inversely related
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movements along the supply curve are caused by a price fall
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supply will expand until market equilibrium is reached
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Detailed explanation-1: -The law of supply states that a higher price leads to a higher quantity supplied and that a lower price leads to a lower quantity supplied. Supply curves and supply schedules are tools used to summarize the relationship between supply and price.
Detailed explanation-2: -The law of supply and demand is a keystone of modern economics. According to this theory, the price of a good is inversely related to the quantity offered. This makes sense for many goods, since the more costly it becomes, less people will be able to afford it and demand will subsequently drop.
Detailed explanation-3: -The law of supply states a direct relationship between the price of a good and quantity of a good supplied. It means that when the price rises, the quantity supplied of good also rises.
Detailed explanation-4: -The law of supply states that an increase in the price of goods or services results in an increase in the quantity that suppliers make available to the market. Existing suppliers increase production of higher-priced goods to maximize profits, while new suppliers may also enter the market.
Detailed explanation-5: -The relationship between quantity supplied and the price is direct, and the relationship between quantity demanded and the price is inverse.