The positive relationship between price and quantity supplied is called:_________?
Correct answer: D. the law of supply
- A. Profit
- B. a change of supply
- C. a shift to the supply curve
- D. the law of supply
Explanation
The law of supply states that, other things remaining constant, producers offer more for sale when price rises and less when price falls. A change in supply instead refers to a shift of the entire supply curve.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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