Question

Which real-life example best illustrates the Law of Supply?

Options

• A farmer sells more wheat when wheat prices are high

• The shopkeeper refuses to sell goods at any price

• A rare coin cannot be supplied at any price

• Students attend fewer classes when exam fees are increased

Answer 1

Farmers sell more wheat when wheat prices are high

Explanation:

The farmer increases supply as wheat prices rise, directly following the Law of Supply.​