The statement which best explains the law of supply is
The quantity supplied by producers increases as prices rise and decrease as prices fall. The correct answer is A.
<h3>Further Explanation
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Supply means the amount of product or services that a producer willing to supply at a certain price. In the market, supply and demand always shift until the market finds the equilibrium price. Equilibrium is the condition when demand meets supply and the price stabilize. There are multiple factors that can affect both supply and demand. These factors included consumer preferences, product substitutes, the price of the complementary product, production cost, supply chain and the number of competitors.
The law of supply is the fundamental stated when the price of goods increases, so the supply will increase too because by selling at a higher price will increase revenue. On the other hand, the law of demand explains when the price goes up, people will less likely to buy the product, it means that the demand will decreases. In other words, the higher the price, the lower the quantity demanded.
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Learn more
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Equilibrium in the market brainly.com/question/1107749
Supply and demand brainly.com/question/2306198
Changing prices affected supply and demand brainly.com/question/1600736
