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State whether the following statement is TRUE and FALSE. Supply is indirectly related to price.OptionsTrueFalse |
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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. |
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