2. The law of supply states that producers will supply ______ goods or services when the price is ______.
A. better; high
B. fewer; low
C. fewer; high
D. more; low

The law of supply states that producers will supply more goods or services when the price is high. The correct answer is option A: 'better'; 'high.' This relationship helps businesses in decision-making regarding pricing and production.
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Answered by Anonymous | 2025-07-04

The law of supply is a fundamental principle in economics and falls under the subject of Social Studies for high school students. It explains the relationship between the price of a good or service and the quantity supplied by producers.
The law of supply states that, all else being equal, an increase in the price of a good or service will lead to an increase in the quantity supplied. Conversely, a decrease in the price will lead to a decrease in the quantity supplied.
This relationship is based on the idea that higher prices provide an incentive for producers to supply more because they can achieve higher revenues and profits. Lower prices, on the other hand, may not cover the costs of production or provide adequate profit, leading to a decrease in the quantity supplied.
Given the options in the multiple-choice question, the correct completion of the statement is: Producers will supply more goods or services when the price is high . Therefore, the correct choice is:

more; high

Answered by JessicaJessy | 2025-07-08