Interpret the following statement: "An increase in the price of wheat will encourage farmers to

increase the quantity of wheat supplied to the market."

A. The statement is correct.

B. The statement would be correct if "quantity of wheat demanded" were substituted for "quantity of

wheat supplied"

C. The statement is incorrect because it confuses a change in quantity supplied with a change in supply.

D. The statement would be correct if it read that a "decrease in the price of wheat will encourage

farmers to increase the quantity of wheat supplied to the market."

Question

Business

Alissa Mendez

7 November, 00:12

Interpret the following statement: "An increase in the price of wheat will encourage farmers to

increase the quantity of wheat supplied to the market."

A. The statement is correct.

B. The statement would be correct if "quantity of wheat demanded" were substituted for "quantity of

wheat supplied"

C. The statement is incorrect because it confuses a change in quantity supplied with a change in supply.

D. The statement would be correct if it read that a "decrease in the price of wheat will encourage

farmers to increase the quantity of wheat supplied to the market."

+2

Answers (1)

Know the Answer?

Alma Vaughan · Answer 1

A. The statement is correct.

Explanation:

According to the law of supply, there is a positive or direct relationship between the price of wheat and the quantity of wheat supplied i. e if the price of wheat is increases then the quantity of wheat supplies is also increases and if the price of wheat decreases then the quantity of wheat supplies is also decreases that represents the direct relationship between the price and the quantity supplied

Hence, the first option is correct