Question

Micro economics explain for 5 markswith the exceptions?

Answer 1

The law of supply describes the practical interaction between the price of a commodity and the quantity offered by producers for sale. The law of supply is a hypothesis, which claims that at higher prices the willingness of sellers to make a product available for sale is more while other things being equal. When the price of a product is high, more producers are interested in producing the products. On the contrary, if the price of a product is low, producers are less interested in producing the product and hence the offer for sale is low. The concept of law of supply can be explained with the help of a supply schedule and a supply curve.