Question

According to the law of? supply, as the price of a product? rises,

A. it shifts the supply curve rightward.
B. it causes a movement down along the supply curve.
C. it causes a movement up along the supply curve.
D. it shifts the supply curve leftward.

Answer 1

The law of supply indicates that when the price of a product increases, it results in a movement up along the supply curve.

Step-by-step explanation:

According to the law of supply, as the price of a product rises, it causes a movement up along the supply curve (C). The law of supply states that there is a direct relationship between price and the quantity supplied. When the price increases, suppliers are willing to supply more of the product because they can get more revenue for their goods, which represents a move up along the supply curve, not a shift of the curve itself. Shifts in the supply curve are caused by factors other than price, such as improvements in technology or changes in the cost of production.