Understanding the Law of Supply in Economics
The law of supply, as explained by Dr. Pooja Singh, demonstrates the relationship between price and quantity supplied. It states that as the price of goods rises, the quantity produced and offered for sale increases, and vice versa. This principle is based on the economic logic that higher prices lead to greater profits and incentivize more production. Various illustrations and examples are provided to illustrate this fundamental economic concept.
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Law of Supply Dr. Pooja Singh Assistant Professor, Department of Economics, School of Arts Humanities And Social Science, Chhatrapati Shahu Ji Maharaj University, Kanpur
Law of Supply Law of Supply The law of supply states the direct relationship between price and quantity supplied. The law of supply can be defines as other things being remaining constant, the quantity of the goods produce and offered for sale will increase as the price of goods rises and decrease as the price fall. The law is based upon the economic sense that at higher the price the greater amount of profit can be earned and thus the greater the incentives to produce the goods and offer it for sale. Dr. Pooja Singh, Assistant Professor, Department of Economics, School of Arts Humanities And Social Science, Chhatrapati Shahu Ji Maharaj University, Kanpur
Law of Supply Quantity supplied Goes up When price goes up When price Goes down Quantity supplied goes down Dr. Pooja Singh, Assistant Professor, Department of Economics, School of Arts Humanities And Social Science, Chhatrapati Shahu Ji Maharaj University, Kanpur
Law of Supply 60 50 50 Price Goods Supplied 40 10 100 40 30 20 200 Price 30 30 300 20 20 40 400 10 10 50 500 0 0 100 200 300 400 500 600 Quantity supplied Dr. Pooja Singh, Assistant Professor, Department of Economics, School of Arts Humanities And Social Science, Chhatrapati Shahu Ji Maharaj University, Kanpur
Law of Supply Reference Dwivedi D N, Managerial Economics, Vikas Publishing House Pvt. Ltd, 2006 Dr. Pooja Singh, Assistant Professor, Department of Economics, School of Arts Humanities And Social Science, Chhatrapati Shahu Ji Maharaj University, Kanpur
