Law of Supply | intro, table, diagram |

LAW OF SUPPLY:-

Introduction:-

Law of supply explain the relationship between price of a commodity and quantity supplied. Normally supply has positive or direct relation with price of a commodity it means more quantity is supply at higher and less quantity at lower price.

Definition:-

Law of supply can be defined as,

“Other things remaining the same quantity supply of a commodity increase with rise in price and decreases with fall in price.”

It can be written as,

Qs = f (P)

P increase = Qs increase

P decrease = Qs decrease

Qs = quantity of supply

P = price

Table / schedule:-

PRICE	QUANTITY
5	50
10	100
15	150

EXPLANATION:-

According to this table, table consists of two columns. First column shows price of product and second column shows quantity supply of a product. When price will be increase 5 to 15 producers wants to supply more units of product. Its means that price will be increase then quantity supply will be increase. Both column shows positive relation between price and quantity supply.

EXPLANATION:-

            According to above diagram, Quantity supply has been measured on horizontal axis (X) and price of commodity has been measured on vertical axis (Y). When price will be increase 5 to 10 then the quantity demand d will be increase 50 to 100. When price will be decrease 10 to 5 then the quantity supply will be decrease 100 to 50. By joining these points we have drawn the supply curve SS. this curve slopes from left upward to the right which shows the positive co-relationship between price and supply.