Question

Which of these statements best represents the law of supply?

a. when input prices increase, sellers produce less of the good.

b. when production technology improves, sellers produce less of the good.

c. when the price of a good decreases, sellers produce less of the good.

d. when sellers' supplies of a good increase, the price of the good increases?

Answer 1

Answer:

The correct answer would be option C, When the price of a good decreases, sellers produce less of the good.

Explanation:

According to the law of supply, when the price of the product increases, the quantity supplied also increases.

This theory suggests that there is a direct relationship between the price of the product and the quantity supplied of the product. So when the price of a good decreases, sellers produce less of the good.