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- Subject
- Economics Mcqseconomics-mcqs
- Published
- 25 Feb 2020
- Last updated
- 28 May 2026
What term describes the direct correlation between price and the amount of goods suppliers are willing to provide?
Multiple choice question for Economics Mcqs. Select an option, then review the explanation below.
Explanation
The law of supply states that there is a positive relationship between price and quantity supplied: as price increases, suppliers are willing to offer more goods, and as price decreases, the quantity supplied falls. This principle assumes all other factors influencing supply remain unchanged.
More Economics Mcqs
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- 1.According to the World Bank, countries are grouped into four categories based on which of the following criteria?
- 2.Automatic stabilizers belong to which category of economic policy tools?
- 3.What is the likely effect of an increase in the money supply?
- 4.Which economic concept illustrates the inverse connection between inflation and unemployment?
- 5.Which of the following does not constitute a part of the Gross Domestic Product (GDP)?