Which of the following statements about the Law of Supply is incorrect?Group of answer choicesWhen price goes down, quantity supplied goes down.When the price goes up, the quantity supplied goes up.Producers want to supply a lot of goods and services when the price is high and make profits.Price and quantity move in opposite directions, an inverse relationship.
Question
Which of the following statements about the Law of Supply is incorrect?Group of answer choicesWhen price goes down, quantity supplied goes down.When the price goes up, the quantity supplied goes up.Producers want to supply a lot of goods and services when the price is high and make profits.Price and quantity move in opposite directions, an inverse relationship.
Solution
The incorrect statement about the Law of Supply is: "Price and quantity move in opposite directions, an inverse relationship."
In the Law of Supply, price and quantity supplied have a direct relationship, not an inverse one. This means that when the price goes up, the quantity supplied also goes up, and when the price goes down, the quantity supplied goes down. This is because suppliers are willing to supply more at higher prices to maximize their profits.
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