Question

What are the reasons behind the law of supply?

Answer 1

Answer:

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.

Answer 2

Reasons for Law of Supply:

Profit Motive: The basic aim of producers, while supplying a commodity, is to secure maximum profits. ...

Change in Number of Firms: ADVERTISEMENTS: ...

Change in Stock: When the price of a good increases, the sellers are ready to supply more goods from their stocks.