Law of Supply
Law of supply states that other factors remaining constant, price and quantity supplied of a good are directly related to each other. In other words, when the price paid by buyers for a good rise, then suppliers increase the supply of that good in the market.
Description: Law of supply depicts the producer behaviour at the time of changes in the prices of goods and services. When the price of a good rise, the supplier increases the supply in order to earn a profit because of higher prices.
Supply Schedule: A table that shows the relationship between the price of goods and quantity supplied. In other words, the supply schedule is the tabular form of price and supply of a particular commodity for a stated period of time. The supply schedule shows how the quantities supplied of a commodity differ with a change in prices (other factors being constant.) It also depicts the willingness of the producers to supply more quantities at higher prices.
| Price | Quantity |
| 1 | 3 |
| 2 | 6 |
| 3 | 9 |
| 4 | 12 |
| 5 | 15 |
Supply Curve: When we plot the supply schedule on a graph then we get the supply curve. The supply curve is an upward sloping curve showing a direct relationship between the price of the commodity and its quantity supplied.
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