Definition of Supply
Supply can be defined as the quantity of a commodity which a producer is willing and able to offer for sale at a particular price and at a particular period of time. The supply of of a commodity is the quantity of that commodity which a producer is willing and able to sell at a given price over a given period of time. Supply is also said to be the part of the total production actually offered for sale at the ruling market price at a particular time, it is said to be “effective supply”.
Law of Supply
The law of supply states that all being equal, the higher the price the higher the quantity of of a commodity that will be supplied or the lower the price, the lower the quantity of the commodity that will be supplied. This law is often regarded as the second law of demand and supply.This law explains that when the price of a commodity is high in the market, more quantity of it will be supplied by the producer and vice versa.
The law states that “as the price of a product rises, the quantity supplied of the product will usually increase, ceteris paribus”(all things been equal)
Supply curve can be defined as the graph showing the relationship between price and quantity of the commodity supplied…
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