Explain why price and supply are positively related
Answers
Answer:
The Law of Supply: Supply has a positive correlation with price. As the market price of a good increases, suppliers of the good will typically seek to increase the quantity supplied to the market. ... It is the point where there is no surplus or shortage in the market.
Answer:
The law of supply states that there is a positive relationship between the quantity that suppliers are willing to sell and the price level.
The market supply curve is derived by summing the quantity suppliers are willing to produce when the product can be sold for a given price.
Explanation:
As a result, it depicts the price to quantity combinations available to consumers of the good or service. In combination with market demand, the market supply curve is requisite for determining the market equilibrium price and quantity.