Select all the correct answers.
Which statements are true according to the law of supply?
A. A decrease in demand leads to an increase in supply.
B. A decrease in demand leads to a decrease in supply.
C. An increase in price leads to a decrease in supply.
D. A decrease in price leads to a decrease in supply.
E. An increase in price leads to an increase in supply.
Answer (2)
According to the law of supply, a decrease in price leads to a decrease in supply, while an increase in price results in an increase in supply. Only these two statements are true based on the principles of supply. Other statements regarding changes in demand affecting supply directly are false. ;
The law of supply indicates that a decrease in price leads to a decrease in supply, and an increase in price results in an increase in supply. Therefore, the true statements are the fourth and fifth options. The other statements regarding changes in demand do not accurately reflect the law of supply.
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