Question

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

Answer 1

The law of supply shows a direct relationship between price and supply when other things remain constant.

• The economic law accurately states the quantity of commodities amply provided by the business will increase, all other factors being equal, as the price of commodity rises, and vice versa.
• Thus, there is a clear price-quantity relationship, the quantities respond in the same direction as changes in prices.
• For instance, a business will produce more tea bags, if the quantity, similarly, If the price of tea bag declines, the reverse is true.

Answer 2

Explanation:

The Law of supply shows a proportional relationship between price and supply when other things are kept constant.

If an economy remains at a point where it is over producing an item, then in that case, the demand of the item will not remain parallel to its supply, and it will also effect its price. On the other hand, when demand is more, and its supply is also high, then prices will become high also