What is the law of supply?(1 point) Responses When higher prices encourage buyers to look for a substitute. When higher prices encourage buyers to look for a substitute. When a rise in prices encourages producers to supply more of a good or service in hopes of making more money. When a rise in prices encourages producers to supply more of a good or service in hopes of making more money. The idea that government should play as small a role as possible in economic affairs The idea that government should play as small a role as possible in economic affairs Situation in which a country imports more than it exports

Answer 1

The correct response that defines the law of supply is: "When a rise in prices encourages producers to supply more of a good or service in hopes of making more money."

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