The Law of Supply

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The amount of commodity that a market can offer is called supply. The amount of certain good, the producer are willing to supply at certain price is referred as the quantity supplied. Like the law of demand, the law of supply illustrates the quantity of commodities that will be sold at a certain price. The law of demand shows a downward slope, whereas the law of supply shows an upward slope. In other words the law of supply states that if the price of commodity increases, the suppliers are willing to supply more quantity and if the price decreases the supply will decrease. Producers are willing to supply more at a higher price because selling a quantity at a higher price will increase their revenue. This is called the Law of Supply.

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