ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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. This is represented by an upward sloping line from left to right.

Detailed explanation-2: -The supply of a good increases if the price of one of its complements in production rises. The supply a good decreases if the price of one of its complements in production falls. Resource and input prices influence the cost of production.

Detailed explanation-3: -Answer and Explanation: False. Since steel is used in the production of automobiles, an increase in the price of steel means that producing automobiles will be expensive. Thus, less automobiles will be produced and the supply curve for automobiles will shift to the left.

Detailed explanation-4: -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.