Published by: Zaya
Published date: 15 Jun 2021
The Law of supply states that other factors remaining constant, price, and quantity supplied of a good are directly related to each other. In other words, when the price paid by buyers for a good rises, then suppliers increase the supply of that good in the market.
Description: The Law of supply depicts the producer's behavior at the time of changes in the prices of goods and services. When the price of good rises, the supplier increases the supply in order to earn a profit because of higher prices.
A table that shows the relationship between the price of goods and quantity supplied. In other words, the supply schedule is the tabular form of price and supply of a particular commodity for a stated period of time. The supply schedule shows how the quantities supplied of a commodity differ with a change in prices (other factors being constant.) It also depicts the willingness of the producers to supply more quantities at higher prices.
| Price | Quantity |
| 1 | 3 |
| 2 | 6 |
| 3 | 9 |
| 4 | 12 |
| 5 | 15 |
When we plot the supply schedule on a graph then we get the supply curve. The supply curve is an upward sloping curve showing a direct relationship between the price of the commodity and its quantity supplied.
