Question: There is a direct ( positive ) relationship between price and quantity supplied. A change in the supply of an item will cause a change
There is a direct positive relationship between price and quantity supplied.
A change in the supply of an item will cause a change in its price, but a change in the price of an item will not cause a change in its supply.
When the price of an item goes down, ceteris paribus, the quantity supplied will go down, but the supply will not change.
When the supply curve for an item shifts to the right, ceteris paribus, it will cause the price of that item to go up
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