The law of supply states that, other things remaining the same,

the quantity supplied of a good rises when its price risesCorrect answerYour answerthe quantity supplied falls when its price risesCorrect answerYour answersupply does not depend on priceCorrect answerYour answerdemand rises when supply risesCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

A higher price makes production more profitable, so firms offer more: price and quantity supplied move together.

Concept: Law of supply
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsDeterminants of supply; movement and shift

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Ten questions from Perfect Competition & Supply, at your own pace.

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Ten questions from Perfect Competition & Supply, at your own pace.

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The law of supply states that, other things remaining the same,

Explanation