State whether the following statement is TRUE and FALSE.
Supply is indirectly related to price.
Supply is indirectly related to price. – False
This statement is false, as supply of a good is directly related to price. This is because, higher prices means higher profit prospective for the seller. Accordingly, they prefer to increase sales as the price rise and vice-versa. Thus, supply is directly related to price of the commodity.
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- Supply Curve and Schedule