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Ostrovityanka [42]
3 years ago
12

If all other factors are equal, what will happen to the supply of a product if the price goes up?

Business
2 answers:
aliina [53]3 years ago
4 0
B. The supply will decrease.

If all other factors are equal, supply will decrease as the prices go up.  Why would this be the case?  As prices go up, demand for the product will go down, because some purchasers will not be able to afford the product.  As demand goes down, then also suppliers will reduce their production of that product.

In economics, the law of demand asserts that the higher the price of something, the less people will demand that thing.  The law of supply asserts that producers will supply more a product when it is selling at a higher price and are less motivated to produce quantities of the product when it is selling at low prices.  


ch4aika [34]3 years ago
4 0
The demand will increase
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