Which interactions is consistent with the law of supply?

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2026-03-21 03:35

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The law of supply states that, all else being equal, an increase in the price of a good or service leads to an increase in the quantity supplied. For example, if a technology company raises the price of its smartphones, manufacturers are likely to produce and supply more units to take advantage of the higher prices. Conversely, if prices fall, suppliers may reduce production. This positive relationship between price and quantity supplied is a key principle of the law of supply.

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