ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An increase in the price of a good will decrease the quantity demanded.
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The price of a good will increase if production input costs increase.
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An increase in taxes will decrease the supply of a good.
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An increase in the number of sellers will increase the supply of a good.
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An increase in the price of a good will increase the quantity supplied.
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Detailed explanation-1: -What Is the Law of Supply? The law of supply is the microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.
Detailed explanation-2: -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-3: -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.
Detailed explanation-4: -The Law of supply states that there is a direct relationship between the price of the commodity and its quantity supplied, ceteris paribus. Key Points. The market is in equilibrium when the demand curve and the supply curve of a good intersect each other.
Detailed explanation-5: -Answer and Explanation: The correct option is a) As the price of a good increases, the quantity demanded of that good decreases. The law of demand says that everything being constant; as the price of the good increases, then there will be a decline in the quantity demanded of that good.