Question

What will happen to the supply of stainless steel utensils if the price of stainless steel falls?

Answer 1

If the price of stainless steel falls, then the supply of stainless steel utensils also falls.

Explanation :-

• If the price of the goods rise then their supply will also rise by suppliers. In other words , The higher the price , The higher the quantity supplied. Supply curve is rising upward from left to right. (Refer Attachment)

• The main goal of suppliers is to gain more profit. When price increases, without any cost, it raises their profits. So, producers increase the supply of the goods by increasing the production.

• When the price of a stainless steel increases, the sellers supply more steel from their stocks. In the same way, When the price of stainless steel falls, then sellers don't supply more steel. So, supply falls.

Hence, If the price of stainless steel falls, then the supply of stainless steel utensils also falls.