BY MICHAEL & JUSTIN

HIGHER THE PRICE, LARGER THE QUANTITY

PRICE OF GOOD RISES, FIRMS WILL PRODUCE MORE TO EARN MORE REVENUE

IT DEVELOPS FROM THE CHOICES OF BOTH PRODUCERS OF GOODS

PRICE OF GOOD FALLS, FIRMS PRODUCE LESS OR DROP OUT OF MARKET

INDIVIDUAL FRIMS CHANGING & FIRMS ENTERING & EXITING PRODUCTION

PRICE OF MILK RISES, THE FIRM WILL PRODUCE MORE QUANTITY OF IT