Question

would the supply of a commodity be affected by the changes in its own price?Why¿​

Answer 1

$\bf\underline {Answer :-}$

$\bf {Yes! }$ Supply of a commodity can be affected by the changes in its own price.

$\bf\underline{Explanation :-}$

There is $\bf {direct \:relationship}$ between supply and price of a commodity. The price of a commodity increases in the market, the supplied amount increases and vice versa.

This is because that a supplier can only be satisfied with the maximum price rate of a commodity. A supplier increases the production when the price rate is maximum and the supplier would gain maximum profit.

The slope of supply curve is rising upwards from left to right indicating positive relationship between price and quantity supplied.