3236EconomicsMedium
The positive relationship between price and quantity supplied is called:________?
Athe law of supply
Ba shift to the supply curve
Ca change of supply
DProfit
Correct answer
A. the law of supply
Explanation
Positive relationship between price and quantity supplied—that a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied—the law of supply. The law of supply assumes that all other variables that affect supply are held constant.