ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What provides a concise description of how producers behave?
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Marginal Utility
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Law of Supply
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Law of Demand
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Law of diminishing marginal utility
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Explanation:
Detailed explanation-1: -Description: Law of supply depicts the producer behavior at the time of changes in the prices of goods and services. When the price of a good rises, the supplier increases the supply in order to earn a profit because of higher prices.
Detailed explanation-2: -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-3: -Which statement best explains the law of supply? The quantity supplied by producers increases as prices rise and decreases as prices fall.
There is 1 question to complete.