which of the following is an implication of the law of supply? a. producers will offer more units at a…

which of the following is an implication of the law of supply? a. producers will offer more units at a higher price and fewer units at a lower price. b. changes in the price of a good leads to a shift in the supply curve. c. increases in money prices will lead to an increase in supply while increases in relative prices will lead to a decrease in supply. d. individuals will purchase fewer units at a higher price and more units at a lower price.

which of the following is an implication of the law of supply? a. producers will offer more units at a higher price and fewer units at a lower price. b. changes in the price of a good leads to a shift in the supply curve. c. increases in money prices will lead to an increase in supply while increases in relative prices will lead to a decrease in supply. d. individuals will purchase fewer units at a higher price and more units at a lower price.

Answer

Brief Explanations:

The law of supply states that, ceteris paribus, the quantity supplied of a good rises when the price of the good rises, and falls when the price of the good falls. Option A correctly reflects this relationship from the producers' side. Option B is incorrect as a change in the price of a good causes a movement along the supply - curve, not a shift. Option C is wrong as the relationship between money and relative prices and supply is more complex and not a simple implication of the law of supply. Option D describes the law of demand from the consumers' side.

Answer:

A. Producers will offer more units at a higher price and fewer units at a lower price.