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Question
Explain the law of supply with the help of a supply schedule and supply curve.
Explain
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Solution
According to the rule of supply, businesses will manufacture and sell more of any item when its price rises and less when its price falls, all other things being equal. ‘supply schedule’ and ‘supply curve’ can be used to show the law of supply.
Supply Schedule for Good X
| Price of Good X (₹ per kg) | Quantity Supplied of Good X (kg per month) | Points on Supply Curve |
| 10 | 5,000 | A |
| 15 | 10,000 | B |
| 20 | 16,000 | C |
| 25 | 25,000 | D |
| 30 | 35,000 | E |
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