What is the law of supply and how do we illustrate it? What ...

[Kthamas]

What is the law of supply and how do we illustrate it?
 
  What will be an ideal response?

Question 2

Monetarism is a school of thought put forth by ________, who argued that the economy would most likely be at potential GDP.
 
  A) Finn Kydland and Edward Prescott B) Milton Friedman
  C) Robert Lucas and Thomas Sargent D) Karl Marx

[TDubDCFL]

Answer to Question 1

The law of supply states that other things remaining the same, the higher the price of a good, the greater is the quantity supplied; and the lower the price of a good, the smaller is the quantity supplied. The law of supply is illustrated by an upward-sloping supply curve drawn with the quantity supplied on the horizontal axis and the price on the vertical axis. The slope is positive to show that the higher the price of a good, the greater is the quantity supplied and the lower the price of a good, the smaller is the quantity supplied.

Answer to Question 2

B