what is law of supply
Answers
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:
The law of supply explains the relationship between price of a commodity and its quantity supplied. As per the law of supply, "other things remaining the same, as the price of a commodity increases its quantity supplied increases and vice versa ". The quantity offered for sale varies directly with price i.e the higher the price the larger is the supply and vice versa. The law of supply is illustrated with the help of a supply and a supply curve.