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34kurt
3 years ago
10

"Falling oil prices have caused a sharp decrease in the supply of oil." Speaking precisely, this quotation is ______.a. Correct;

a decrease in price always causes a decrease in supplyb. Incorrect; a decrease in price causes an increase in supply, not a decrease in supplyc. Incorrect; a decrease in price causes an increase in the quantity supplied, not a decrease in supplyd. Incorrect; a decrease in price causes a decrease in the quantity supplied, not a decrease in supply
Business
1 answer:
FinnZ [79.3K]3 years ago
5 0

Answer: Option (d) is correct.

Explanation:

According to the law of supply, it states that there is a positive relationship between the price of a commodity and the quantity supplied of a commodity. This means that as the price of a commodity increases, as a result the quantity supplied of that commodity increases.

Therefore, any change occur in the prices of a commodity will affect the quantity supplied of a commodity not supply of a commodity.

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Explanation:

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