The relationship between price and quantity supplied is typically:

• A. unrelated, meaning there is no relationship between price and quantity supplied
• B. positive, meaning as price increases, quantity supplied increases
• C. constant, meaning quantity supplied does not change with price
• D. negative, meaning as price increases, quantity supplied decreases

Answer: (B)

Verified step by step guidance

1. Understand the law of supply, which states that there is a direct relationship between the price of a good and the quantity supplied, holding other factors constant.
2. Recognize that when the price of a good increases, producers are generally willing to supply more of it because higher prices can cover higher production costs and increase potential profits.
3. Express this relationship mathematically as a positive slope in the supply function, where quantity supplied (Q_s) is a function of price (P): \(Q_s = f(P)\) with \(\frac{dQ_s}{dP} > 0\).
4. Contrast this with other possible relationships: no relationship (quantity supplied does not change with price), constant quantity supplied regardless of price, or a negative relationship (which would contradict the law of supply).
5. Conclude that the typical and correct relationship between price and quantity supplied is positive, meaning as price increases, quantity supplied increases.