Question

Indicate direct relation between price and supply.

Answer 1

Explanation:

The law of supply is a fundamental principle of economic theory which states that, keeping other factors constant, an increase in price results in an increase in quantity supplied. In other words, there is a direct relationship between price and quantity: quantities respond in the same direction as price changes.

Hope it will you.

Answer 2

Price of the commodity-
Other thing being constant, higher the price of the commodity, larger will be the supply and smaller quantity will be supplied at a lower price. At higher price the producer/firm now expects to earn larger profit and will thereby get motivated to increase the supply of the commodity.