The correct answer is: a. A sandwich shop increases the number of sandwiches they supply every day when the price is increased. The law of supply says that if the prize and the profit increases, the producer will try to make more money off it by providing more products.
What is the law of supply in economics?
Definition: Law of supply states that other factors remaining constant, price and quantity supplied of a good are directly related to each other. When the price of a good rises, the supplier increases the supply in order to earn a profit because of higher prices.
Which statement best explains the law of supply?
along a track in the same direction. Which statement best explains the law of supply? The quantity supplied by producers increases as prices rise and decreases as prices fall.
What is the law of supply and demand in economics?
The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. Generally, as price increases, people are willing to supply more and demand less and vice versa when the price falls.
What statement best compares the law of supply and demand?
The correct answer is B: The two economic laws exist in theory. They work in practice, but real-world factors can have an effect.
Where supply and demand meet is called?
The point on the graph where supply and demand meet is known as the. Equilibrium point.
What is the law of supply in simple words?
Definition of ‘Law of Supply’ Definition: Law of supply states that other factors remaining constant, price and quantity supplied of a good are directly related to each other. In other words, when the price paid by buyers for a good rises, then suppliers increase the supply of that good in the market.
How did changing prices affect supply and demand?
How do changing prices affect supply and demand? NOT As price increases, both supply and demand increase. NOT As price decreases, both supply and demand decrease. NOT As price increases, supply decreases, but demand increases.
Which factor most directly affects of furniture company supply?
The factor that directly affects the supply of a furniture company is the availability of raw materials and natural resources.
