Which statement best explains the law of supply?

a. the quantity supplied by producers increases as prices rise and decreases as prices fall.

b. the quantity supplied by producers decreases as prices rise and increases as prices fall.

c. the quantity supplied by consumers increases as prices rise and decreases as prices fall.

d. the quantity supplied by consumers decreases as prices rise and increases as prices fall.

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The statement which best explains the law of supply is

The quantity supplied by producers increases as prices rise and decrease as prices fall. The correct answer is A.

Supply means the amount of product or services that a producer willing to supply at a certain price. In the market, supply and demand always shift until the market finds the equilibrium price. Equilibrium is the condition when demand meets supply and the price stabilize. There are multiple factors that can affect both supply and demand. These factors included consumer preferences, product substitutes, the price of the complementary product, production cost, supply chain and the number of competitors.

The law of supply is the fundamental stated when the price of goods increases, so the supply will increase too because by selling at a higher price will increase revenue. On the other hand, the law of demand explains when the price goes up, people will less likely to buy the product, it means that the demand will decreases. In other words, the higher the price, the lower the quantity demanded.

Equilibrium in the market

Supply and demand

Changing prices affected supply and demand

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)

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