why more of a commodity is supplied at a higher price?
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Price and supply of a product are directly related, i.e. with increase in price supply increases and vice versa. More commodity is supplied at a higher price because at higher prices there are higher chances of making profit which induces firm to offer more to market for sale.
bretshahid:
SUPPLY IS DIRECTLY RELATED TO THE PRICE. IN ORDER WORD IT IS ASSUMED THE PRODUCERS ARE WILLING TO SUPPLY MORE AT HIGHER PRICE THEREFORE THE PROPORTION ABOUT SUPPLY IMPLY THAT THE HIGHER PRICE OF X COMMODITY SHIRTS - PRODUCER WILL SUPPLY MORE.
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___________HEY MATE_________
MORE OF A COMMODITY SUPPLY AT A HIGHER PRICE BECAUSE OF TWO REASON -------------
⚫OTHER THING REMAINING CONSTANT ,HIGHER PRICE IMPLIES HIGHER PROFIT.ACCORDINGLY,THE PRODUCER IS INDUCED TO SUPPLY MORE.
⚫ INCREASE IN OUTPUT OCCUR UNDER THE LAW OF DIMNISHING RETURN.IT IMPLIES INCREASE IN MARGINAL COST AS OUTPUT IS INCREASED.
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