"Other things equal,when the price of a good rises,the quantity supplied of the good also rises,and when the price falls,the quantity supplied falls as well." This relationship between price and quantity supplied
A)is referred to as the law of supply.
B)applies only to a few goods in the economy.
C)is represented by a downward-sloping supply curve.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The statement describes the law of supply, which states that there is a positive relationship between the price of a good and the quantity supplied of the good. As the price of a good increases, suppliers are willing to supply more of the good, and vice versa. This law applies to all goods in the economy, as suppliers are rational actors who respond to changes in prices in order to maximize their profits. The law of supply is typically represented by an upward-sloping supply curve.

"Other Things Equal,when the Price of a Good Rises,the Quantity