Question

frds help me with this...
answer in one line..
1. Do fine supply.
2. What is means by expansion of supply ?
3. Why is the law of supply not applicable to rare goods ?

Answer 1

Answer:

1. Supply refers to the quantity of a commodity that a firm is willing and able to offer for sale, at each possible price during a given period of time.

2. When a rise in the price of a commodity leads to increase in quantity supplied of a commodity, it is called expansion/extension of supply.

3. Rare goods The goods that are rare such as artistic or precious goods have a limited supply. The supply of these goods cannot be increased according to their demand or rising prices. Thus, even if their price increases their supply cannot be increased. In this case, also the law of supply shall not apply.