16
QuizMultiple Choice

Shopping Review and Quiz

Question 16 • FL-0708340-Spanish 1 LMS

Which statement describes the law of supply?

Answer
A
When prices are lower, consumers will demand less of a good or service.
B
When prices are lower, producers will supply more of a good or service.
C
For higher prices, producers will supply less of a good or service.
D
For higher prices, producers will supply more of a good or service.

Explanation

The law of supply says that, other things being equal, producers are willing to supply more of a good when its price is higher. Therefore, “For higher prices, producers will supply more of a good or service” is correct. Choice B reverses this relationship, and choice A describes consumer demand rather than supply.

AI-written and checked against the verified answer.

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