ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The law of supply is the microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.

Detailed explanation-2: -What is the law of supply? producers offer more of a good as its price increases and less as its price falls.

Detailed explanation-3: -The law of supply states that a higher price leads to a higher quantity supplied and that a lower price leads to a lower quantity supplied. Supply curves and supply schedules are tools used to summarize the relationship between supply and price.

Detailed explanation-4: -The law of supply states that the quantity of a good supplied (i.e., the amount owners or producers offer for sale) rises as the market price rises, and falls as the price falls. Conversely, the law of demand (see demand) says that the quantity of a good demanded falls as the price rises, and vice versa.

Detailed explanation-5: -The increase in price will cause the profits of producers to go up, motivating them to produce a greater quantity of the good. 3. As producers increase production, price will begin to fall, motivating consumers to purchase greater quantities of the good.