Question

________ states that, other things being equal, quantity supplied of a commodity increases with increase in its price. Mark the right option from the given options below:

Options

• Law of variable proportion

• Cost function

• Law of supply

• Law of returns to scale

Answer 1

Law of supply states that, other things being equal, quantity supplied of a commodity increases with increase in its price. Mark the right option from the given options below:

Explanation:

The law of supply states that, other things remaining constant, producers offer a larger quantity for sale when the commodity’s price rises. The other options concern production or costs, not this price–quantity supplied relationship.