Draw a supply curve of smartphones. Label it. Use any prices and quantities you wish but make your supply curve obey the law of supply. Then draw an arrow to indicate what happens to the quantity of smartphones supplied when the price of a smartphone rises. A rise in the price of a smartphone​ ______ the quantity supplied and​ ______ supply.

Answer :

Answer:

Increases; changes

Explanation:

The law of supply states that when prices of a commodity (smartphone) rises, the supply (from producers/manufacturers) increases the quantity supplied of that product since it provides opportunity for them to make profit.

And this quantity supply increase will definitely lead to increase supply of that product.

peaceazuka

Answer:

A rise in the price of a smartphone​ increases the quantity supplied and​ cause a rise in supply

Explanation:

The law of supply is a fundamental principle of economic theory which states that, keeping other factors constant, an increase in price results in an increase in quantity supplied. In other words, there is a direct relationship between price and quantity: quantities respond in the same direction as price changes.

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.

The suppliers of smartphones will have more supplies readily available in order to maximize profit.

Other Questions