Question

ccording to the law of supply, the quantity of an item supplied will rise as a result of: A) an increase in the number of firms producing the item. B) decreases in the prices of inputs used to produce the item. C) an increase in the price of the item. D) a decrease in the price of the item.

Answer 1

Answer:

(C) an increase in the price of the item

Explanation:

The law of supply states that the higher the price, the higher the quantity demanded.

This law is premised on the fact that suppliers of a commodity are motivated to supply more at higher prices than at lower prices.

Though Options A and B will, to some extent, lead to an increase in the quantity supplied, the law of supply relates only the price to the change in quantity supplied.