What is the relationship between the price of a product and the quantity supplied?(1 point)

Question

Responses

There is no relationship between the price of a product and the quantity supplied.
There is no relationship between the price of a product and the quantity supplied.

Price and quantity supplied move in the same direction; as price decreases, quantity supplied decreases and as price increases, quantity supplied increases.
Price and quantity supplied move in the same direction; as price decreases, quantity supplied decreases and as price increases, quantity supplied increases.

Price and quantity supplied share an inverse relationship; as price increases, quantity supplied decreases and as price decreases, quantity supplied increases.
Price and quantity supplied share an inverse relationship; as price increases, quantity supplied decreases and as price decreases, quantity supplied increases.

Price and quantity supplied move in the opposite direction; as price increases, quantity supplied decreases and as price decreases, quantity supplied increases.

Answer 1

The correct response is:

Price and quantity supplied move in the same direction; as price decreases, quantity supplied decreases and as price increases, quantity supplied increases.

This reflects the law of supply, which states that there is a direct relationship between price and quantity supplied: as the price of a product rises, producers are willing and able to supply more of the product, and as the price falls, the quantity supplied typically decreases.