According to the law of supply, price and quantity move along a track in the same direction.
- Supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.
- Producers and suppliers will supply goods and services at the most favorable market price that id determined by the forces of demand and supply among other factors.
Law of supply
- According to the law of supply, an increase in price of a good or a service results to an increase in the quantity of goods or services that suppliers are willing to supply.
- Conversely, a decrease in price on the other hand will result to low supply of quantity of goods and services by the suppliers.
- For example, a manufacturer would supply more bags of cement in the market if the prices of the bags of cement increases keeping other factors are kept constant.
- Supply schedule outlines the relationship between prices of goods and services and the Quantity of goods and services by producers.
- Quantity of goods and services supplied by the producers varies with the market price.
- The supply schedule helps us to come up with a law that we call the law of supply which defined the relationship between price and quantity of goods and services supplied.
Keywords: Supply, law of supply, price and quantity supplied
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- Supply schedule: brainly.com/question/8702937
- Law of supply: brainly.com/question/8702937
- Price determination: brainly.com/question/2396092
- Demand and supply: brainly.com/question/6749722
Level; High school
Topic: Demand and supply
Sub-topic: Law of supply