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

Determine amplitude of the different diffracted plane wave, Consider a thin...

Consider a thin transparent plate whose thickness d(x,y) is a square (instead of a sinusoidal) periodic function of x of period Δ=λ. Show that the angle θ between the diffracted wa

Direct and indirect benefits, Direct and Indirect Benefits Life time e...

Direct and Indirect Benefits Life time earnings of an educated person is an instance of direct benefit from education. Skills produced in training or extension programmes in a

Law of demand, Give two level of incomes 100$ and 150$ DRAW demand curve fo...

Give two level of incomes 100$ and 150$ DRAW demand curve for individual a & b and then draw market demand curve for these two different kind of income

Miss, explain how scarcity impacts choice 2.expain the three steps process ...

explain how scarcity impacts choice 2.expain the three steps process in economic analysis

Graph the total benefits and total costs functions, This problem continues ...

This problem continues the analysis from question 2. a.Another economic study finds that the marginal cost (MC) to farmers of nutrient runoff abatement is MC = .1Q. Graph this f

Classical model explanation for involuntary unemployment, What is the class...

What is the classical model's explanation for involuntary unemployment? According to the classical model, involuntary unemployment only increases when there is something impedi

Factors of production, The process of production needs several inputs. Thes...

The process of production needs several inputs. These inputs are known as the factors of production. In most cases, firms own some of the factors of production while some have to b

Identify the four essential economic activities, Identify the four essentia...

Identify the four essential economic activities. The four main economic activities are: a)  resource maintenance, b)  production, c)  distribution, and d) consumpti

Water resources , Normal 0 false false false EN-IN X-...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

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