A positive relationship between price and quantity supplied implies that as price:
A) goes up, quantity supplied falls.
B) goes up, quantity supplied rises.
C) falls, supply falls.
D) goes up, supply goes up.

Question

Quizplus · Accepted Answer

A positive relationship between price and quantity supplied means that as the price increases, the quantity supplied also increases. This is a fundamental principle of supply in economics.

A Positive Relationship Between Price and Quantity Supplied Implies That