Q.The relationship between the price of a commodity and the supply of a commodity is :

Price and quantity supplied move in the same direction, so the relationship is positive (direct).

The law of supply states that, other things remaining constant, the quantity supplied of a commodity rises as its price rises and falls as its price falls. A higher price makes production and sale more profitable, encouraging firms to supply more; a lower price does the reverse. Because both variables move together, the supply curve slopes upward from left to right and the price–supply rel …