Question

If the supply curve of a commodity is positively sloped, a rise in the price of the commodity ceteris paribus results in and is referred to as

Answer 1

Answer:

Quantity demanded of the complements (complementary goods) of a commodity always moves in the opposite direction in comparison to the price of the commodity, implying inverse relation between the price of a commodity and the demand for its complementary goods.

Answer 2

Answer:

If the supply curve of a commodity is positively sloped, a rise in the price of the commodity ceteris paribus results in and is referred to as increase in quantity supplied.

Explanation:

Law of demand says, ceteris paribus, an increase in price will lead to an increase in quantity supplied and a decrease in price will lead to a decrease in quantity supplied. Both price and quantity supplied has a direct or, positive relation.

In the given question, it is mentioned that supply curve is positively sloped, which means there is a direct relation between price and supply, meaning with an increase in price, supply increases and with a decrease in price, supply decreases.

Hence, with a rise in price of the commodity, ceteris paribus, there is an increase in quantity supplied.

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