The law of supply states that other things remaining the same, a decrease in the price of kayak leads to?

1 answer:

3 0

The law of supply states that other things remain the same, a decrease in the price of kayaks leads to a reduction in the number of kayaks provided.

<h3>What are the laws of supply?</h3>

The law of supply is a microeconomic principle that asserts, with all other things being equal, that if the cost of an item or service rises, suppliers will offer more of those goods or services and vice versa. In terms of economics, supply refers to the number of items that a person or firm offers to the market, which is equivalent to the total amount that they produce at one particular time. For instance, if Apple produces 100 iPhones, then this is the quantity that is sold. Supply and demand were defined by Adam Smith, who is frequently referred to as the Father of Economics, as an "invisible hand" that spontaneously steers the economy.

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