Explain the law of supply. What does the law of supply imply about the shape of the supply curve?
What will be an ideal response?
The law of supply describes the positive relationship between price and quantity supplied. All else equal, as the price of a good rises, the quantity supplied of the good rises as well. As the price of a good falls, the quantity supplied falls. This implies that the supply curve will be upward sloping.
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The three main monetary policy instruments are
A. the money supply, the market interest rate, deposit insurance B. open market operations, reserve requirement ratio, the discount rate C. open market operations, deposit insurance, the money supply D. open market operations, reserve requirement ratio, the market interest rate
The market demand curve for a perfectly competitive industry is the horizontal summation of each individual firm's demand curve
Indicate whether the statement is true or false