English

______ states that, other things being equal, quantity supplied increases with increase in price and decrease with decrease in price of a commodity. -

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Question

______ states that, other things being equal, quantity supplied increases with increase in price and decrease with decrease in price of a commodity.

Options

  • Law of supply

  • Law of variable proportion

  • Cost function

  • Law of returns to scale

MCQ
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Solution

The Law of supply states that other things being equal, quantity supplied increases with an increase in price and decreases with a decrease in the price of a commodity.

Explanation:

The supply law demonstrates the direct relationship between price and quantity supplied. As the price rises, so does the quantity supplied, and as the price falls, so does the quantity supplied.

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