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Determine if the following statement has to do with quanity supplied, supply curve,...

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maheen100 | Student, Undergraduate | (Level 1) Honors

Posted September 30, 2012 at 2:45 PM via web

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Determine if the following statement has to do with quanity supplied, supply curve, supply schedule, law of supply

 

the claim that, other things being equal, the quantity supplied of a good increases when the price of that good rises

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted September 30, 2012 at 2:52 PM (Answer #1)

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The statement that you have given here is the law of supply. 

The law of supply has to do with how much of a given good or service producers will be able and willing to produce and sell at a given price.  (This price is the price they can sell it for, not the price of producing it.)  Not surprisingly, the law holds that producers will supply more of a good or service (all other things being equal) when they can sell that good for a higher price.  This is the law of supply.

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