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

Responses

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.

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 quantity supplied.

1 answer

The law of supply states that, all else being equal, an increase in price results in an increase in quantity supplied, and a decrease in price results in a decrease in quantity supplied.

Based on this, the two correct answers 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.

(Note: The other statements that mention changes in supply rather than quantity supplied do not correctly represent the law of supply.)