Question

Which of these situations violates the "ceteris paribus" (other things being constant) condition for the Law of Supply?

Options

• Costs of production stay the same

• The firm's product line does not change

• Technology used in production improves

• Prices of related goods remain constant

Answer 1

Technology used in production improves.

Explanation:

A change in technology is an exception to the law’s assumptions, as it can affect supply independent of price.​