Question

If a price is low enough to attract buyers, it will always encourage producers to sell.

Answer 1

If a price is low enough to attract buyers, it will always encourage producers to sell.

The statement is False because as per the law of demand the quantity supplied increases when the price increases and the quantity supplied decreases when the price decreases.

The producers will try to decrease the price to attract consumers and clear the excess quantity in the market but it will not always encourage them to sell as they would like to sell a higher quantity at higher prices and will try to gradually increase the price by creating a shortage in the market.