Law of Supply
When the prices of a good increases, ______
Quantity demanded increases
Quantity demanded decreases
Quantity supplied increases
Quantity supplied decreases
The price of a good and the quantity supplied are ______ related.
The supply curve is upward sloping because __________.
quantity demanded decreases when price increases
costs increase when the price increases
As the price increases, suppliers can justify producing at higher marginal costs
All of the above
Study the supply curve given in the figure.
If the market price is $8, what is the quantity supplied?
Assume that firms in an industry observe a 10% increase in the productivity of labor, but to get there they had to increase the cost of labor by 5%. What should be expected to happen in the output market as a result of this development?
The supply should increase
The supply should decrease
The supply should remain unchanged
The demand should increase