What does the law of supply suggest?
A. The equilibrium price for a product is decided only by sellers.
B. The equilibrium price for a product is decided only by buyers.
C. The amount of product sellers create is based on the product's price.
D. The amount of product buyers purchase is based on the product's price.
Answer (2)
The law of supply indicates that higher prices result in an increased quantity of product supplied by sellers. It emphasizes the relationship between the price of goods and the amount that sellers are willing to create. Therefore, option C accurately represents this principle. ;
The law of supply indicates that an increase in a product’s price leads to an increase in the quantity supplied by sellers. Therefore, the correct answer is option C: 'The amount of product sellers create is based on the product's price.' This principle is fundamental in understanding how prices and market supply interact.
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