Economy, asked by deephellxshan, 7 months ago

The law of supply shows a ... realtionship between price and supply when other things remains constant ​

Answers

Answered by waliarishika7
0

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.[1] In other words, there is a direct relationship between price and quantity: quantities respond in the same direction as price changes. This means that producers are willing to offer more of a product for sale on the market at higher prices by increasing production as a way of increasing profits.[2]

In short, the law of supply is a positive relationship between quantity supplied and price and is the reason for the upward slope of the supply curve.

Similar questions