Which of the following statements about the law of supply is false?

Question

a. Under the law of supply, there is a direct relationship between price and quantity.
b. As the price increases, so will the quantity supplied.
c. Graphically, a supply curve is generally upward sloping.
d. As the price increases, the quantity supplied decreases.

Answer 1

The false statement about the law of supply is:

d. As the price increases, the quantity supplied decreases.

This statement contradicts the law of supply, which states that there is a direct relationship between price and quantity supplied: as the price increases, the quantity supplied also increases.