What is the relationship between the price and the quantity offered according to the law of supply?
a. The higher the price, the lower the quantity offered.
b. The lower the price, the higher the quantity offered.
c. There is no relationship between price and quantity offered.
I - The law of supply is based on the assumption that companies produce goods and services with the fundamental objective of obtaining profits.
II - The relative price of a product with respect to other goods is a determinant of profits.
III - The higher the price of a good or service, the more profitable its production and the greater the quantity offered.
a) I and II are correct.
b) II and III are correct.
c) I and III are correct.
d) All statements are correct.