Question

According to the law of supply, price and quantity move

Answer 1

According to the law of supply, price and quantity move along a track in the same direction.

Further Explanation

Supply

• Supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.  
• Producers and suppliers will supply goods and services at the most favorable market price that id determined by the forces of demand and supply among other factors.

Law of supply

• According to the law of supply, an increase in price of a good or a service results to an increase in the quantity of goods or services that suppliers are willing to supply.
• Conversely, a decrease in price on the other hand will result to low supply of quantity of goods and services by the suppliers.
• For example, a manufacturer would supply more bags of cement in the market if the prices of the bags of cement increases keeping other factors are kept constant.

Supply schedule

• Supply schedule outlines the relationship between prices of goods and services and the Quantity of goods and services by producers.
• Quantity of goods and services supplied by the producers varies with the market price.
• The supply schedule helps us to come up with a law that we call the law of supply which defined the relationship between price and quantity of goods and services supplied.

Keywords: Supply, law of supply, price and quantity supplied

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1. Supply schedule: brainly.com/question/8702937
2. Law of supply: brainly.com/question/8702937
3. Price determination: brainly.com/question/2396092
4. Demand and supply:  brainly.com/question/6749722

Level; High school

Subject: Business

Topic: Demand and supply

Sub-topic: Law of supply

Answer 2

According to the law of supply, price, and quantity move in the same direction.  

Further explanation:

Relationship between price and quantity:

Law of supply implies that with other factors constant, price, and quantity supplied of a good hold a positive relationship. With the rise in price of a good, quantity supplied of that good also rises when other factors are held fixed. Similarly, with other factors held fixed, quantity supplied of a particular good falls with fall in its price.

The rationale behind the law of supply:

The main economic concept behind this is that with an increase in price of a good, profits from producing that good rises with other factors being same. Other factors include cost of production to producers, and with no change in cost and rise in price, producers have an incentive to produce more to enhance their profits. In the same manner, producers have less incentive to produce more when price of the good falls as the profits also lowers down.

Therefore, as per the law of supply, price, and quantity move in the same direction.

Learn more:

        1. Learn more about the Law of demand and supply

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        2. Learn more about the  Demand and supply diagram

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       3. Learn more about the Demand and type of goods

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Answer details:

Grade: Senior School

Subject: Economics

Chapter: Law of supply

Keywords: according, to, law, the law of supply, supply, demand, demand and supply, price, quantity, move, price and quantity, quantity supplied, quantity demanded, market forces, price relationship .