Which Of The Following Represents The Law Of Supply?

Answer and Explanation: Option d. Price and quantity supplied are directly related, ceteris paribus. This option is correct because the law of supply states that there exists one to one relationship between price and quantity supplied.

What is the representation of the law of supply?

Suggest a new Definition Proposed definitions will be considered for inclusion in the Economictimes.com (##include msid=4006719,type=11 ##) Definition: Law of supply states that other factors remaining constant, price and quantity supplied of a good are directly related to each other. The above diagram shows the supply curve that is upward sloping (positive relation between the price and the quantity supplied). When the price of the good was at P3, suppliers were supplying Q3 quantity. As the price starts rising, the quantity supplied also starts rising. Snapshot: This is how the law of supply works.

Which of the following is true for the law of supply?

Answer and Explanation: The correct option is c. As the price of a good or service rises, the quantity supplied will increase. Everything else held constant; the law of supply states that as the price of a good increases, the number of goods supplied increases.

What is an example of supply in economics?

Elements of Supply – There are additional factors that economists say can affect supply and inventory. Specific quantity is the amount of a product that a retailer wants to sell at a given price is known as the quantity supplied. Typically a time period is also given when describing quantity supplied For example:

When the price of an orange is 65 cents the quantity supplied is 300 oranges a week.If the price of copper falls from $1.75/lb to $1.65/lb, the quantity supplied by a mining company will fall from 45 tons a day to 42 tons a day.

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A supply schedule is a table which lists the possible prices for a good and service and the associated quantity supplied. The supply schedule for oranges could look (in part) as follows:

75 cents – 470 oranges a week70 cents – 400 oranges a week65 cents – 320 oranges a week60 cents – 200 oranges a week

A supply curve is simply a supply schedule presented in graphical form. The standard presentation of a supply curve has price given on the Y-axis and quantity supplied on the X-axis. Price elasticity of supply represents how sensitive quantity supplied is to changes in price. Sources

Investopedia staff. “Law of Supply.” Investopedia.com. McIntyre, Shawn. ” Economics for Beginners,” Owlcation.com, 30 June 2016.

Which of the following activities is a supply of services Mcq?

(b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services.

What do you mean by the supply of goods Mcq?

The supply of a good refers to the amount of the good offered for sale at a particular price per unit(period) of time. Was this answer helpful?

What is law of supply and demand?

What is the Law of Supply and Demand? – The law of supply and demand reflects the relationship between demand and supply in that a change in one causes a change in the other. According to the law of supply and demand, when there is higher demand for a commodity, there is a rise in the supply of such commodity and vice versa.

The law of supply and demand explains the interaction between the desire for a product and the supply of that product. For instance, if the supply of a product is how and the demand is high, it means such product is scarce and insufficient for the number of people that wants it, hence, it will lead to an increase in the price of the product.

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What is the supply function?

Meaning of Supply Function: – Supply function is a numerical portrayal of the association between the amount expected (quantity demand) of a product or service, its value, and other related factors, for example, related products costs and input costs.

A supply function has numerous individual dependent variables and independent variables. A supply equation can be planned by inspecting the connection between the independent variable and the supply. It can likewise be formed by characterising whether the relationship is negatively related or positively related.

For instance, as a general rule, the market cost or price and supply are contrarily associated. Then again, supply and innovative improvement are positively related; for instance, better innovation and technology demonstrate added supply.

The supply function is expressed as, Sx = f (Px, P0, Pf, St, T, O)Where:Sx = Supply of the given commodity x.Px= Price of the given commodity x.P0 = Price of other goods.Pf = Prices of factors of production.St= State of technology.T = Taxation policy.O = Objective of the firm.

Which type of representation of the law of supply is the supply curve?

supply curve, in economics, graphic representation of the relationship between product price and quantity of product that a seller is willing and able to supply, Product price is measured on the vertical axis of the graph and quantity of product supplied on the horizontal axis.

In most cases, the supply curve is drawn as a slope rising upward from left to right, since product price and quantity supplied are directly related (i.e., as the price of a commodity increases in the market, the amount supplied increases). This relationship is dependent on certain ceteris paribus (other things equal) conditions remaining constant.

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Such conditions include the number of sellers in the market, the state of technology, the level of production costs, the seller’s price expectations, and the prices of related products. A change in any of these conditions will cause a shift in the supply curve.

What does supply represent in economics?

Advertising & Editorial Disclosure Last Updated: 7/13/2022 quality verified Quality Verified Supply in economics is defined as the total amount of a given product or service a supplier offers to consumers at a given period and a given price level. It is usually determined by market movement. For instance, a higher demand may push a supplier to increase supply. Loading.