Law of Supply

Law of Supply:

Supply means the goods provided for sale at a price throughout a particular period of time. This is the capacity and intention of the producers to generate goods and services for sale at a particular price.

The supply of a commodity at a specified price might be stated as the amount of it that is actually provided for sale per unit of time at that cost.

The law of supply creates a direct relationship among price and supply. Organizations will supply less at lower prices and more at higher costs. “Other things enduring similar, as the price of commodity mounts, its supply expands and as the price cascade, its supply contracts”.

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