Question

question 22
which scenario best illustrates the law of supply?
o an increase in the market price of coffee leads farmers to cultivate and supply more coffee beans.
o market disruptions cause suppliers to reduce quantities despite higher prices.
o a fixed supply due to limited resources causes quantity supplied to remain unchanged as price increases.
o consumers buy more goods as their incomes rise, increasing overall demand.

Explanation:

The Law of Supply states that, ceteris paribus, as the price of a good rises, the quantity supplied of that good rises, and vice - versa. The first option shows price increase leading to quantity supplied increase.

Answer:

An increase in the market price of coffee leads farmers to cultivate and supply more coffee beans.