mihaunc3h8artiz
Answered

Which statements are true according to the law of supply?

1.)A decrease in demand leads to an increase in supply.

2.)A decrease in demand leads to a decrease in supply.

3.)An increase in price leads to a decrease in supply.

4.)A decrease in price leads to a decrease in supply.

5.)An increase in price leads to an increase in supply.

Verified Answer :

I believe the answer is: 
-A decrease in price leads to a decrease in supply.
-An increase in price leads to an increase in supply.

As the price of a product fall down, the amount of profit that the sellers would get for selling the product would also fall. This would cause them to decrease the amount of supply so they can produce more profitable happen. The exact opposite happen when the price of the product rises.

Parrain

The true statements according to the Law of Supply are:

  • A decrease in price leads to a decrease in supply.
  • An increase in price leads to an increase in supply.

What happens when prices rise?

When there is an increase in prices, the Law of Supply shows that there will be an increase in supply because suppliers will want to make more profits.

If the prices decrease however, a situation arises where suppliers will reduce supply as the profit incentive is gone.

Find out more on the Law of Supply at https://brainly.com/question/3699486.

#SPJ5

Related Questions