Which situation best illustrates an effect of the law of supply? A. A store stocks more phones when it learns that their selling price
has gone up.
B. A theater sells more tickets when incomes rise across a country.
C. A car company sells a lot more cars after it lowers its prices.
D. A restaurant increases the number of items on its menu to attract
customers.
SUBMI

A. A store stocks more phones when it learns that their selling price  has gone up.

Explanation:

The law of supply states that if there is an increase in the price of a commodity or good, then the supply or quantity also increases. In simple terms, it means that the price of a good is directly related to the quantity supplied.

Taking the above statement into consideration, the best illustration of this law of supply is when the stocks of phones are increased by a store when their selling prices increased. This follows the law of supply by the increase in stock after the selling price increases. So, when the price increases, the quantity of phones also increases.

Thus, the correct answer is option A.

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