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Question
Which statement best expresses the Law of Supply?
Options
When price rises, demand rises; when price falls, demand falls.
When price rises, supply falls; when price falls, supply rises.
When price rises, supply rises; when price falls, supply falls.
When price rises, quantity supplied stays the same.
MCQ
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Solution
When price rises, supply rises; when price falls, supply falls.
Explanation:
The law states that supply moves in the same direction as price.
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