THE LAW OF SUPPLY
THE LAW OF SUPPLY Education,Law,Writing The law of the supply is one of the fundamental concepts in the economics. Law of supply works hand in hand with the law of demand. The supply is the amount a commodity a producer is willing to supply in a market while the price is what the supplier receives after selling a commodity. Law of supply is a microeconomic law that all the other factors remaining constant, the price and measure supplied of goods are directly related to each other. This means that when the prices rise, the supplier automatically increases the supply of the goods in the market. The law of supplyassumes that all variables that affect the supply remain constant. When the price of the items goes up, the supplier maximizes the profit by increasing the quantity. law of supplymostly depicts the producer’s behavior when the prices of goods and services changes. When the price of the commodity is high the producer increase the supply to earn more profit. The to...