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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
Fill in the Blanks
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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Market Demand
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