All of the following are consistent with the law of supply except
A) the supply curve is positively sloped
B) as price increases, the quantity supplied increases
C) the extra cost of producing additional units of output rises as output rises
D) the extra cost of producing additional units of output falls as output rises

Question

Quizplus · Accepted Answer

The law of supply suggests that as the price of a good or service increases, the quantity supplied increases, and vice versa, which is consistent with choices A, B, and C. However, D contradicts the principle that the extra cost (marginal cost) of producing additional units typically rises with increased output, not falls.

All of the Following Are Consistent with the Law of Supply