Which of the following satisfy the law of supply? Select TWO correct answers. (2 points)

Question

Responses

an increase in price followed by an increase in amount supplied.
an increase in price followed by an increase in amount supplied.

an increase in priced followed by a decrease in amount supplied.
an increase in priced followed by a decrease in amount supplied.

a decrease in price followed by a decrease in amount supplied.
a decrease in price followed by a decrease in amount supplied.

a decrease in price followed by an increase in amount supplied.

Answer 1

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

Based on this principle, the two correct answers that satisfy the law of supply are:

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

These reflect the expected behavior of suppliers in response to changes in price.