The law of supply states that an increase in the price of a good

Question

a. decreases the demand for that good.
b. decreases the quantity demanded for that good.
c. increases the supply of that good.
d. increases the quantity supplied of that good.
e. does none of the above.

Answer 1

The correct answer is:

d. increases the quantity supplied of that good.

The law of supply states that, all else being equal, an increase in the price of a good will lead to an increase in the quantity supplied of that good.