donnacabrera18 donnacabrera18

20-02-2020
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Write a short paragraph about supply using all of the following terms: law of supply, law of diminishing returns, supply curve, shortage, equilibrium price, surplus

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Alondatraylor13 Alondatraylor13

21-02-2020

Answer: law of supply,

Explanation:

Law of supply depicts the producer behavior at the time of changes in the prices of goods and services. When the price of a good rises, the supplier increases the supply in order to earn a profit because of higher prices.

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.

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