The law of supply states that as price increases, ceteris paribus, _____.(1 point)

Question

Responses

supply decreases
supply decreases

supply increases
supply increases

quantity supplied increases
quantity supplied increases

quantity supplied decreases

Answer 1

The correct response is:

quantity supplied increases

The law of supply states that as the price of a good or service increases, the quantity supplied of that good or service also increases, holding other factors constant (ceteris paribus).