# ECONOMICS (CBSE/UGC NET)

## ECONOMICS

### SUPPLY

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following is consistent with the law of supply?A. As the price of calculators rise, the quantity supplied of calculators decreases, ceteris paribus.B. As the price of calculators calls the supply of calculators increases, ceteris paribus.C. As the price of calculators rise, the quantity supplied of calculators increases, ceteris paribus.D. As the price of calculators rise, the supply of calculators increases ceteris paribus.
 A A B B C C D D
Explanation:

Detailed explanation-1: -Answer: d. An increase in market price will lead to an increase in quantity supplied. When all else is constant, the law of supply states that the price and the quantity supplied have a direct relationship. If the market price of the output increases, the quantity supplied also increases.

Detailed explanation-2: -The law of supply states that ceteris paribus, the quantity supplied for a good or service is directly related to its price. Hence, a decrease in the price of a product leads to a decrease in its quantity supplied. Similarly, an increase in the price of a product leads to an increase in its quantity supplied.

Detailed explanation-3: -The correct option is c. As the price of a good or service rises, the quantity supplied will increase. Everything else held constant; the law of supply states that as the price of a good increases, the number of goods supplied increases.

Detailed explanation-4: -Which statement is not consistent with the law of supply? Quantity supplied of a good is inversely related to the goodâ€™s price. If supply and demand both shift to the right, equilibrium quantity: rises, but the equilibrium price may rise, fall, or stay the same.

There is 1 question to complete.