Which of the following best describes the relationship between the price of necklaces and the quantity that Rachael supplies?

• A. As the price increases, Rachael supplies fewer necklaces.
• B. There is no relationship between price and the quantity Rachael supplies.
• C. As the price increases, Rachael supplies more necklaces.
• D. Rachael supplies the same number of necklaces regardless of the price.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the Law of Supply, which states that, all else equal, an increase in the price of a good typically leads to an increase in the quantity supplied of that good.
2. Step 2: Recognize that the quantity supplied refers to how many units of a good a producer is willing and able to sell at a given price.
3. Step 3: Analyze the options given: if the price increases, according to the Law of Supply, the quantity supplied should increase, not decrease or stay the same.
4. Step 4: Eliminate options that contradict the Law of Supply, such as 'As the price increases, Rachael supplies fewer necklaces' and 'Rachael supplies the same number of necklaces regardless of the price.'
5. Step 5: Conclude that the best description is 'As the price increases, Rachael supplies more necklaces,' because this aligns with the fundamental economic principle of supply behavior.