Q.Write a short note on: The law of supply

The law of supply states that, other things being equal, the quantity supplied of a good varies directly (positively) with its price — more is supplied at a higher price and less at a lower price, so the supply curve slopes upward. ## Meaning The law of supply states that, other things remaining constant (ceteris paribus), the quantity supplied of a commodity is directly (positively) related to its price: - when the price rises, producers supply more, and - when the price falls, producers supply less. ## Reason and shape A higher price means higher profits, so producers are willing to offer more for sale; a lower price reduces profit, so they supply less. Because of this direct relationship the supply curve slopes upward from left to right. The 'other things' held constant include the cost of production, technology, prices of related goods and the goals of the producer. …