The correct answer is: C. The law of supply
The law of supply states that, all other things being equal, an increase in price will lead to an increase in quantity supplied. This is because producers are more willing to produce a good when the price is higher, as they will make more profit.
A change in demand, on the other hand, refers to a shift in the demand curve, which can be caused by a number of factors, such as changes in income, taste, or the prices of related goods.
An inferior good is a good whose demand decreases as income increases. This is because consumers tend to substitute inferior goods for superior goods as their income increases.
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