ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The quantity supplied varies inversely with its price.
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The quantity supplied varies irregularly with its price.
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The quantity demanded varies inversely with its price.
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The quantity supplied varies directly with its price.
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Detailed explanation-1: -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 the price of a good or service varies directly with the quantity supplied. This means that when price increases the quantity supplied increases and when price decreases the quantity supplied decreases.
Detailed explanation-3: -The Law of Supply states that there is a direct relationship between the market price of a good or service and the quantity of that good or service that producers are willing and able to produce.
Detailed explanation-4: -The law of supply relates price changes for a product with the quantity supplied. In contrast with the law of demand the law of supply relationship is direct, not inverse. The higher the price, the higher the quantity supplied.
Detailed explanation-5: -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.