Question

How do falling prices affect supply? (1 point) The supply curve moves to the left. The supply curve moves to the right. The quantity demanded rises. The quantity supplied rises.

Answer 1

The quantity demanded rises and this is how falling prices affect supply. The correct option among all the options that are given in the question is the third option. People will try to buy more of the product as the product is available at a much cheaper rate. This way the demand of the product in the market will rise.