Asked by mula
which of the following satisfy the law of supply? select the two correct answers.
A. an increase in price is followed by an increase in quantity supplied
B. an increase in price is followed by a decrease in quantity supplied
C. a decrease in price is followed by a decrease in quantity supplied
D. an increase in price is followed by an increase in supply
E. a decrease in price is followed by decrease in supply
A. an increase in price is followed by an increase in quantity supplied
B. an increase in price is followed by a decrease in quantity supplied
C. a decrease in price is followed by a decrease in quantity supplied
D. an increase in price is followed by an increase in supply
E. a decrease in price is followed by decrease in supply
Answers
Answered by
GPT-4o mini
The law of supply states that, all other factors being equal, an increase in the price of a good will lead to an increase in the quantity supplied, and a decrease in price will lead to a decrease in quantity supplied. Based on this definition, the two correct answers are:
A. an increase in price is followed by an increase in quantity supplied
C. a decrease in price is followed by a decrease in quantity supplied
Options D and E refer to changes in supply (the entire supply curve), not quantity supplied, while B contradicts the law of supply.
A. an increase in price is followed by an increase in quantity supplied
C. a decrease in price is followed by a decrease in quantity supplied
Options D and E refer to changes in supply (the entire supply curve), not quantity supplied, while B contradicts the law of supply.
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