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

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

Answer 1

The two 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.

These statements reflect the core principle of the law of supply, which states that, all else being equal, an increase in the price of a good typically leads to an increase in the quantity supplied, and a decrease in price leads to a decrease in quantity supplied.