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

Question

Responses

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

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

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

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

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

Answer 1

The law of supply states that, all else being equal, an increase in price results in an increase in the quantity supplied, and a decrease in price results in a decrease in the quantity supplied. Based on this definition, the correct 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.

So, the two correct answers are:

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