which statement best describes the relationship between price and quantity supplied? when prices increase…
which statement best describes the relationship between price and quantity supplied? when prices increase, quantity supplied increases. when prices increase, quantity supplied stays the same. when prices decrease, quantity supplied increases. when prices decrease, quantity supplied stays the same.
Answer
Brief Explanations:
The law of supply states that, ceteris paribus (all other things being equal), there is a positive relationship between the price of a good or service and the quantity supplied. Producers are more willing to supply a greater quantity at higher prices as it leads to higher potential profits.
Answer:
When prices increase, quantity supplied increases.