SUPPLY

SUPPLY

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SUPPLY

Means the quantity of a product which the suppliers produce and brought for sale in the market

The law of supply:

Other factors remain constant, when prices of a product increases its supply also increases and vice versa

Thus the quantity supplied varies directly with price.

Supply schedule & curve: 

 

Rise/Fall in Supply Curve

The price of the good causes change along supply line, while the other factors shift in supply curve. When supply increases, it shifts to the right and when decreases it shifts to the left.

Rise/Fall in Supply Curve
Rise/Fall in Supply Curve

 

 

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