Question

What is law of supply?

Answer 1

The law of supply is an economic principle that states that there is a direct relationship between the price of a good and the quantity of that good producers are willing and able to supply. According to this law, as the price of a good increases, the quantity supplied by producers also tends to increase, while as the price decreases, the quantity supplied tends to decrease. This relationship is based on the assumption that all other factors influencing supply, such as input costs, technology, and government regulations, remain constant. The law of supply reflects the behavior of producers in a competitive market and is a fundamental concept in economics.