Describe the law of supply, Microeconomics

Assignment Help:

Supply of a commodity is functionally related to its price. The law of supply rated to this function relationship between price of a commodity and its supply. In contrast to the inverse relationship between the quantity demanded and the changes in price the quantity supplied generally varies directly with price. That is the higher the price the large is the quantity supplied of a commodity.

The supply schedule and supply curve reflect the law of supply. According to the law of supply when the price of a commodity rises, the quantity supplied of it in the market increases and when the price of a commodity falls its quantity demanded decrease other factors deeming supply remaining the same. Thus according to the law of supply, the quantity supplied of a commodity is directly or positively related to price. It is due to this direct relationship between price of a commodity and its quantity supplied that the supply curve of a commodity slopes upward to right as seen from supply curve SS in when price of wheat rises from $ 520 to $ 530 per quintal the quantity supplied of wheat in the market increase from 200 quintals to 225 quintals per period.


Related Discussions:- Describe the law of supply

Money multiplier, Should the bank not have anyone to lend the demand deposi...

Should the bank not have anyone to lend the demand deposit to (like that will ever happen) would the size of the money multiplier decrease? If so, why?

Agricultural growth and productivity trends, AGRICULTURAL GROWTH AND PRODUC...

AGRICULTURAL GROWTH AND PRODUCTIVITY TRENDS: Despite a steady decline in the share of agriculture in the Gross Domestic Product (GDP) of India, this sector continues to remain

Marginal utility, discuss whether marginal utility is a realistic piece of ...

discuss whether marginal utility is a realistic piece of economic analysis in explaining consumer demand

Summary of demand and supply considerations of education, Summary of Demand...

Summary of Demand and Supply Considerations of Education A study of supply and demand considerations in education helps in understanding four major issues and concerns of an e

Calculate quarterly performance metrics , I would tend to think that a 5% p...

I would tend to think that a 5% per year goal is more reasonable. Smaller incremental goals always appear to be more attainable, while more radical goals may actually be more diffi

Breadtalk fixed and variable costs in singapore.., I wanted to the fixed an...

I wanted to the fixed and variable costs of breadtalk in singapore from economic perspective

Elastic and inelastic demand, Elastic and Inelastic Demand can be understoo...

Elastic and Inelastic Demand can be understood as follows: Slope and elasticity of demand have an inverse relationship between them. When slope is high elasticity of demand bec

The market mechanism , The Market Mechanism  Features of the equil...

The Market Mechanism  Features of the equilibrium or market clearing price: – QD = QS  – No shortage or scarcity  – No extra supply price.  – No pressure on th

Average labor productivity, can average labor productivity fall even though...

can average labor productivity fall even though total output is rising

Compute marginal cost and average total cost, 1.  What is the relationship ...

1.  What is the relationship between a firm's total revenue, profit and total cost? Give an example of hypothetical data and draw the curves. 2.  Define economies of scale and e

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd