question 10 (1 point) the law of supply: is based on the theory of economic man, or homo economicus…

question 10 (1 point) the law of supply: is based on the theory of economic man, or homo economicus. economic man responds to higher prices by reducing production. is based on the law of increasing cost. as production in an industry expands, the cost of resources increases, leading to higher costs of production. is also based on the law of the constitution. the constitution of the u.s. makes the law of supply mandatory in all 50 states. postulates that in a world of self - interest, business people will only increase their production if prices are falling.

question 10 (1 point) the law of supply: is based on the theory of economic man, or homo economicus. economic man responds to higher prices by reducing production. is based on the law of increasing cost. as production in an industry expands, the cost of resources increases, leading to higher costs of production. is also based on the law of the constitution. the constitution of the u.s. makes the law of supply mandatory in all 50 states. postulates that in a world of self - interest, business people will only increase their production if prices are falling.

Answer

Brief Explanations:

The law of supply states that, ceteris paribus, as the price of a good or service rises, the quantity supplied rises, and vice - versa. It is based on the law of increasing cost. When an industry expands production, the cost of resources typically increases, leading to higher production costs. Economic man responds to higher prices by increasing production, not reducing it. And the law of supply is an economic concept, not related to the Constitution. Business people increase production when prices are rising, not falling.

Answer:

The option "is based on the law of increasing cost. As production in an industry expands, the cost of resources increases, leading to higher costs of production." is correct.