According to the law of supply, producers provide _____ of a good when the price _____.Multiple choice question.less; increasesless; decreasesmore; decreases
Question
Solution
The law of supply states that there is a direct relationship between the price of a good and the quantity of that good that producers are willing to supply. In other words, as the price of a good increases, producers are incentivized to supply more of that good to the market because higher prices can lead to greater potential revenue and profits. Conversely, if the price decreases, producers may supply less of that good since the incentive to produce diminishes.
Final Answer
Producers provide more of a good when the price increases. Therefore, the correct answer is more; increases.
Similar Questions
What has happened when the quantity supplied decreases?A.Price has increased.B.Supply has increased.C.Supply has decreased.D.Price has decreased.
Which of these results in an increase in both price and quantity?A.A demand increaseB.A supply increaseC.A demand decreaseD.A supply decrease
The link between a seller's quantity supplied and the market price is called the supply ______.Multiple choice question.mechanismpipelineschedule
In a(n) Blank______ lease, the lessor does not select, manufacture, or supply the goods.Multiple choice question.leveragedfinanceoperatingconsumer
Choice is necessitated by _____.*1 pointA. demand and supplyB. cost of productionC. production possibility curveD. scarcity of resources
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.