ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increase in supply
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increase in quantity supplied
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decrease in supply
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decrease in quantity supplied
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Detailed explanation-1: -4. Assume the price of cars increases. What will happen to the quantity demanded of cars? Answer: There is no shift in the demand curve for cars.
Detailed explanation-2: -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-3: -The law of supply states that the quantity of a good supplied (i.e., the amount owners or producers offer for sale) rises as the market price rises, and falls as the price falls. Conversely, the law of demand (see demand) says that the quantity of a good demanded falls as the price rises, and vice versa.
Detailed explanation-4: -An increase in demand will cause an increase in the equilibrium price and quantity of a good.