Paper 2 · Elasticity of Demand and Supply
The law of supply states that, other things being equal,
Athe quantity offered for sale depends only on the cost of the raw materials used
Bthe higher the price of a good, the greater the quantity producers offer for sale
Cthe higher the price of a good, the smaller the quantity producers offer for sale
Dthe quantity offered for sale stays the same whatever price the market settles at
Explanation: Price and quantity supplied move in the same direction, because a higher price makes production more profitable and draws more output onto the market. That direct relationship is why the supply curve slopes upwards from left to right.
Derived from ZIMSEC Economics 4050/2 Paper 2, June 2023, Q1