# According to the law of supply if the price of bird seed falls, the ________________ of bird seed_______?

According to the law of supply if the price of bird seed falls, the ________________ of bird seed _______________ will ___________.

quantity; supplied; fall.

quantity; supplied; increase.

quantity; demanded; fall.

Supply; demanded; increase.

Supply; demanded; decrease.

supply of bird seed will drop

More people can afford to buy the bird seed and so will buy it. The question you have to ask your self is what happens to the supply? Will it go up or down? That is more complicated and you need to ask your teacher about it.

Regan-economics worked with supply side economics and tried to increase the supply thus driving down the price, there by helping the public. If you have 3 companies making bird seed you can expect a fairly high and constant price. If you have 30 people making bird seed then they will need to compete and so the price will drop.

If the price of bird seed drops then the supply will drop, but what effect will that have on the market and the amount of bird seed made (your quantity). Usually if demand increases then the companies work to increase supply.

As the price of bird seed drops, the quantity of bird seed will drop as the demand for it increases. Until the price drops to the point of near break even at that point the number of companies making it will drop, which will decrease the supply and therefore cause an increase in price because of the increased demand. As the price increases then people will start looking for alternatives to bird seed so they can save money.
the quantity demanded will rise.

If P increase -> Quantity Demanded decrease
If P decrease -> Quantity Demanded increase
quantity supplied fall

if the price is lowered the entrepreneur has less incentive to produce more so he will produce less
demand of the bird seed supply will increase
Since the price will have fallen, more and more people will want to purchase it.
quantity; supplied; increase.
Supply; demanded; increase.
i think the answer could change depending on what tense that sentence is in. none of the answers are even grammatically correct to fit in there.

if it is past tense then maybe the price fell cause supply increased or demand decreased

this question is lame and needs to be reworded. teachers seen to have complicated a simple concept.
Let me clear this up...

The first part of the statement is the key part.

"According to the law of supply"
The law of supply deals with supply only; not with demand. So the last three answer are not right. "The law states that only increase in price will increase the supply of a good."
Quantity supplied is directly proportional to price or it's a upward sloping line.

So "if the price falls the QUANTITY of bird seed SUPPLIED will FALL."

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