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... same, the higher the price of a good, the greater is the quantity supplied; and the lower the price of a good, the smaller the quantity supplied The law of supply occurs because an increase in the. .. things remaining the same, the higher the price of a good, the smaller is the quantity demanded; and the lower the price of a good, the greater the quantity demanded The law of demand occurs for... on the quantity is ambiguous If the increase in demand is greater than the decrease in supply, the quantity increases If the increase in demand is the same size as the decrease in supply, the