Question

Give reasons "Supply is directly related to price".

Answer 1

Heya....

See here for your answer....

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Supply is the different possible quantities that a producer is ready to sell at different possible prices...

It is positively related to the price because , it is the point if view of a producers...

At the high prices he want to sell his commodity to earn high income or profit...

Thank you

Answer 2

This statement is 100 percent true that “supply is directly related to price”.

• The reason for this is that when the price of the specific product will increase, seller will have more profit.
• So, he will try to increase his supply of product to earn more profit.
• If the price of the product will decrease, supply of that product will automatically decrease based on same logic explained above.