Question

Why more of a commodity is supplied at a higher price

Answer 1

price and supply of a product is directly related i.e with increase in price supplies it increase and vice versa more commodity is supplied at higher prices because at higher prices there are higher chances of making profit which induces form to offer more to market for sale.

Answer 2

More of a commodity is supplied at a higher price because of two reasons: (1)other things remaining constant higher price applied higher profit according Delhi the producer is induced to supply a more .

(2) increase in output required to increase supply acres under the law of diminishing returns it implies increase in MC (marginal cost )as output is increase .Accordingly price must rise if more is to be produced to supply more .