Question

9.Law of supply is (3.12 Law of Supply) a)Direct relationship between price and supply b)Inverse relationship between price and supply c)Price equl to spply d)Non of the above 10. Name the returns to scale when the output increases by more the 5% for 5% increase in the inputs (3.5 Law of Returns to Scale) a)Increasing returns to scale b)Decreasing returns to scale c)Constant returns to scale d)All of the above one mark questions​

Answer 1

Explanation:

The law of supply is the microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa. The law of supply says that as the price of an item goes up, suppliers will attempt to maximize their profits by increasing the quantity offered for sale.