the law of supply states that there is a positive relationship between the price and the quantity supplied…
the law of supply states that there is a positive relationship between the price and the quantity supplied. thus, as the price decreases, \na. the demand decreases.\nb. the quantity demanded decreases.\nc. the quantity produced by firms decreases.\nd. the supply decreases.
Answer
Brief Explanations:
The law of supply indicates that price and quantity - supplied move in the same direction. When price decreases, firms have less incentive to produce, so the quantity produced by firms (quantity - supplied) decreases. Demand is not directly related to the law of supply in this context. Supply is a schedule and doesn't change just due to a price change (a change in price causes a movement along the supply curve, not a shift of the supply curve).
Answer:
C. the quantity produced by firms decreases.