17
QuizMultiple Choice

Profit — Unit test

Question 17 • 2102320-Economics HONORS - Edgenuity Teacher

Which statement best explains the law of supply?

Answer
A
The quantity supplied by producers increases as prices rise and decreases as prices fall.
B
The quantity supplied by producers decreases as prices rise and increases as prices fall.
C
The quantity supplied by consumers increases as prices rise and decreases as prices fall.
D
The quantity supplied by consumers decreases as prices rise and increases as prices fall.

Explanation

The law of supply describes how producers respond to a good’s price: all else equal, they are willing to supply more when the price rises and less when it falls. Therefore, the best statement is that the quantity supplied by producers increases as prices rise and decreases as prices fall.

AI-written and checked against the verified answer.

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