Explain the law of supply

Reference no: EM13696693

Evaluate the theories of demand and supply to answer this question

(a) Explain the law of supply

(b) Assume the role of a manager in auto tire’s company. What effect will each of the following have on the company’s supply of auto tires and what will you do with the sales of your product?

1) A technological advance in methods of producing tires

2) A decline in the number of firms in the tire industry

3) An increase in the price of rubber used in the production of tires

4) The expectation that the equilibrium price of auto tires will be lower in the future than currently.

Reference no: EM13696693

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