According to the law of supply, which of the following represents the relationship between quantity supplied and price? A. move in same direction. B....

The law of
supply states that as the price of a product or service increases, the quantity supplied will
also increase. The reverse is true if the price of a product or service drops. Thus, the correct
answer to this question is the first choice or answer A. On a graph, the supply line moves
upward and to the right when the price is on the vertical axis and the quantity supplied is on
the horizontal axis.

In reality, the price of a product or service is
determined by the interaction between supply and demand. Thus, if suppliers provide too much of
a product or service, they will reach a point where they likely wont be able to sell everything
that they supplied.

When just considering supply, I am more willing to supply
my labor when the wage I receive is high. The higher the pay, the more likely I would be willing
to work. At some point, if the pay is too low, I wouldnt be willing to supply my labor. If I
could referee a high school basketball game for $150, I would be willing to work several games a
day, and I would work five or six days a week. On the other hand, if the pay rate for refereeing
a high school basketball game was $30, I probably wont work at all.