According to the law of supply, when,prices decrease quantity supplied decreases quantity supplied increases supply decreases supply increases

## Step 1<br />The law of supply is a fundamental principle in economics that states that, all else being equal, an increase in price results in an increase in quantity supplied. This is because producers are more likely to produce and sell more of a good when the price is higher, as it increases their potential profits.<br /><br />## Step 2<br />Conversely, when prices decrease, producers are less likely to produce and sell as much of the good. This is because the lower price reduces their potential profits.<br /><br />## Step 3<br />Therefore, when prices decrease, the quantity supplied decreases. This is a direct application of the law of supply.