ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The amount of goods available
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Producers make more of a good when the price is high
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Producers make more of a good when the price is low
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Consumers want more of a good when the price is low
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Detailed explanation-1: -The law of supply says that a higher price will induce producers to supply a higher quantity to the market. Because businesses seek to increase revenue, when they expect to receive a higher price for something, they will produce more of it.
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 there is an increase in supply for goods and services while demand remains the same, prices tend to fall to a lower equilibrium price and a higher equilibrium quantity of goods and services.
Detailed explanation-4: -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.
Detailed explanation-5: -a) The “law of supply” states that as price rises, quantity supplied also rises. b) If the marginal cost of producing a good is higher at high levels of output than at low levels of output, then the supply curve for that good is upward sloping.