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Which of the following satisfy the law of supply? Select the two correct answers.(1 point)

Responses

A decrease in price is followed by a decrease in quantity supplied.
A decrease in price is followed by a decrease in quantity supplied.

A increase in price is followed by a decrease in quantity supplied.
A increase in price is followed by a decrease in quantity supplied.

An increase in price is followed by an increase in quantity supplied.
An increase in price is followed by an increase in quantity supplied.

An increase in price is followed by an increase in supply.
An increase in price is followed by an increase in supply.

A decrease in price is followed by a decrease in supply.
A decrease in price is followed by a decrease in supply.

1 answer

The responses that satisfy the law of supply are:

  1. An increase in price is followed by an increase in quantity supplied.
  2. A decrease in price is followed by a decrease in quantity supplied.

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, and a decrease in price will lead to a decrease in the quantity supplied.