The law of supply states thata)the supply of a product is not affected by its price.b)when the supply of a product decreases, the price of the product falls.c)when the supply of a product increases, the price of the product rises.d)the quantity supplied of a product will increase when the price of that product increases.

Option D, the quantity supplied of a product will increase when the price of that product increases, is the right answer.

Explanation:

Option “D” is the correct answer because the supply of the commodity is directly related to the price. The increasing price of the commodity induces the supplier to supply more of the commodity because the increase in the price of the product leads to an increase the revenue or profit. However, the law state that the increasing price leads to an increase in supply (assuming other things being equal). Thus option D is correct.

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