Chapter 5 - Producer's Behaviour Economics Solutions for Class 12 Commerce Economics
State whether the following statement are TRUE and FALSE.
iii. Supply is indirectly related to price.
Answer: Supply is indirectly related to price. – False
Explanation:
This statement is false, as supply of a good is directly related to price. This is because, higher prices means higher profit prospective for the seller. Accordingly, they prefer to increase sales as the price rise and vice-versa. Thus, supply is directly related to price of the commodity.
