Question

The market supply schedule shows ____ relationship between price and quantity supplied
a. inverse b. direct c. no d. none of these​

Answer 1

Answer

B. Direct

Explanation

Price and quantity supplied are directly related. As price goes down, the quantity supplied decreases; as the price goes up, quantity supplied increases.

Answer 2

The answer is b. direct.

The market supply schedule shows a direct relationship between price and quantity supplied.

• The price of a commodity and its quantity supplied are positively related to each other.

• In other words, a higher price brings higher supply. Similarly, a lower price leads to a reduction in supply.

• It happens because when the commodity brings in higher revenues, the producer supplies more to the market to earn more.

• On the other hand, if the product brings in lower revenues, the producer reduces production and supply to avoid loss.