The law of supply claims that sellers will increase their supply of a good if:A.the demand for the good goes up.B.the price of the good goes up.C.the demand for the good goes down.D.the price of the good goes down
Question
The law of supply claims that sellers will increase their supply of a good if:A.the demand for the good goes up.B.the price of the good goes up.C.the demand for the good goes down.D.the price of the good goes down
Solution
The law of supply claims that sellers will increase their supply of a good if the price of the good goes up. So, the correct answer is B. the price of the good goes up.
Here's why: The law of supply is an economic principle stating that as the price of a good or service increases, the quantity of goods or services offered by suppliers increases, and vice versa. This happens because suppliers are trying to maximize their profits. When the price of a good goes up, suppliers can earn more revenue by selling the same quantity, so they are incentivized to produce more.
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