0
The quantity of a good or service that producers are willing to produce at a given price. Change in price affect the quantity supplied and these changes are represented in the movement along the supply curve.
The reason for the direct relationship between price and quantity supplied is the seller's goal of profit-maximization. For the seller to make a profit, the sell price must be sufficient to cover the seller's cost of production. An increase in the selling price will make it easier for sellers to cover their cost of production. An increase in the selling price will cause existing producers to increase their production and will attract new producers into the market. Thus, an increase in the selling price will cause a increase in the quantity supplied.
What else can I help you with?
How does the quantity supplied change as the price increases?
As the price increases, the quantity supplied also increases. This is known as the law of supply, which states that there is a direct relationship between price and quantity supplied.
What is the relationship between price and the total quantity supplied by all firms in the market?
The relationship between price and the total quantity supplied by all firms in the market is known as the law of supply. According to this law, as the price of a good or service increases, the quantity supplied by firms also increases, and vice versa. This means that there is a direct relationship between price and the total quantity supplied in the market.
Does a supply curve show a direct or inverse relationship between price and quantity supplied?
Yes, it does.
The relationship between quantity supplied and price is direct or inverse?
As quantity supplied goes up, price goes down. This is because the supply function is downward sloping. Thus, the relationship is inverse.
The relationship between quantity demanded and price is direct or inverse?
direct
How does the quantity supplied change as the price increases?
As the price increases, the quantity supplied also increases. This is known as the law of supply, which states that there is a direct relationship between price and quantity supplied.
What is the relationship between price and the total quantity supplied by all firms in the market?
The relationship between price and the total quantity supplied by all firms in the market is known as the law of supply. According to this law, as the price of a good or service increases, the quantity supplied by firms also increases, and vice versa. This means that there is a direct relationship between price and the total quantity supplied in the market.
Does a supply curve show a direct or inverse relationship between price and quantity supplied?
Yes, it does.
The relationship between quantity supplied and price is direct or inverse?
As quantity supplied goes up, price goes down. This is because the supply function is downward sloping. Thus, the relationship is inverse.
The relationship between quantity demanded and price is direct or inverse?
direct
What statement refers to the law of supply?
Law of supply states that other factors remaining constant, supply is the function of its price where an increase in price of the commodity increases quantity supplied in the the market and a decrease in price reduces quantity supplied.
How does the relationship between price and quantity impact supply in the market?
The relationship between price and quantity impacts supply in the market through the law of supply. As the price of a good or service increases, suppliers are more willing to produce and sell more of it, leading to an increase in supply. Conversely, if the price decreases, suppliers may reduce the quantity they are willing to supply. This direct relationship between price and quantity supplied helps determine the overall supply levels in the market.
What is a relationship between two quantities in which the ratio of one quantity to other quantity is constant?
It is called direct variation.
Which term describes a relationship in which one quantity is a multiple of the other quantity?
Direct variation
What is the relationship between the price of an item and the quantity demanded?
It is a direct relationship. As demand for an item rises, all else equal, price for an item will rise.
What term describes a relationship in which one quantity is a multiple of the other quantity?
Direct variation
What factors influence the supply of a product and how does the law of supply impact the market?
The supply of a product is influenced by factors such as production costs, technology, government regulations, and the number of suppliers. The law of supply states that as the price of a product increases, the quantity supplied by producers also increases. This impacts the market by creating a direct relationship between price and quantity supplied, leading to changes in supply levels based on market demand.
