Which of the following statements describes the law of supply?

Question

BlackTom AI · Accepted Answer

We start by identifying the core idea of the law of supply: as the price of a good rises, producers are generally willing to supply more of that good, and as price falls, they supply less.
Option a: 'Suppliers will sell more when demand is low' misreads the law of supply. Supply is tied to price, not directly to current demand levels; demand conditions can influence quantity demanded, but the law of supply specifically describes how quantity supplied responds to price changes, not to demand.
Option b: 'Suppliers will be willing to sell more when the price is higher' correctly captures the law of supply. Higher prices provide greater incentive or profit per unit, encouraging producers to increase the quantity they offer to the market.
Option c: 'Suppliers prefer low prices' is a mischaracterization. Suppliers do not prefer low prices; they prefer higher prices because higher prices typically increase potential profits, which is what motivates greater production and sales.
Option d: 'There is a negative relationship between quantity supplied and price' contradicts the law of supply. The law establishes a positive relationship (as price goes up, quantity supplied tends to go up), so describing a negative relationship is incorrect.
In summary, option b aligns with the fundamental economic principle that price signals incentivize greater supply, while the other statements either misstate the relationship or confuse supply with other concepts like demand.

Which of the following statements describes the law of supply?Single choice

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