Explain how quantity supplied and price are related
Answers
Explanation:
Price and quantity supplied are directly related. As price goes down, the quantity supplied decreases; as the price goes up, quantity supplied increases. Price changes cause changes in quantity supplied represented by movements along the supply curve.
Based on the basic theory of demand and supply in Microeconomics,quantity supplied and any commodity/product price is positively related.
Explanation:
In Microeconomics,the law of supply defines the positive relationship between a product price and its quantity supplied by the sellers of producers.As the price of any product/commodity increases,the suppliers or producers will supply more of that product attracted by the prospect of higher revenue due to price increase.Hence,the quantity supplied also increases.A higher price always indicates higher sales revenue from selling the same level of the original output level.Hence,according to law of supply,both price of any commodity has a positive or direct relation with its quantity supplied.This positive relationship between price and quantity supplied also explains the upward sloping shape of the market supply curve for any product.