What line represents the prices a producer is willing to sell a product for?
Supply curve: A graphical representation of the quantity producers are willing to make when the product can be sold at a given price.
What is supply explain the law of supply?
Definition: 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 rises, then suppliers increase the supply of that good in the market.
What are the reasons of law of supply?
Reasons for Law of Supply:
- Profit Motive: The basic aim of producers, while supplying a commodity, is to secure maximum profits.
- Change in Number of Firms: ADVERTISEMENTS:
- Change in Stock: When the price of a good increases, the sellers are ready to supply more goods from their stocks.
Where the law of supply does not hold good?
Competition – When there is high competition in the market, the sellers may sell goods in high quantities at low rates. It refers to a situation where the law of supply does not hold. Perishable Goods – Sometimes sellers are keen to sell perishable or fresh goods even at cheap prices.
How does the market supply reflect the law of supply?
How does the market supply reflect the law of supply? As the price increases, each and every seller sells a larger quantity of the product. a question that can be answered because the Bureau of Labor Statistics keeps an alternative measure of unemployment that tracks the length of time workers have been unemployed.
Who gave law of supply?
Alfred Marshall After Smith’s 1776 publication, the field of economics developed rapidly, and refinements were to the supply and demand law. In 1890, Alfred Marshall’s Principles of Economics developed a supply-and-demand curve that is still used to demonstrate the point at which the market is in equilibrium.
What happens to equilibrium price when demand increases and supply decreases?
If demand increases and supply decreases then equilibrium quantity could go up, down, or stay the same, and equilibrium price will go up. If demand increases and supply stays the same then equilibrium quantity goes up, and equilibrium price goes up.