Advertisements
Advertisements
Questions
State and explain the law of supply with the help of a diagram.
State the law of supply and explain it with the help of a diagram.
State the law of supply. Illustrate it diagrammatically.
Advertisements
Solution
The law of supply states that with all other factors remaining constant, the quantity of a commodity supply varies directly with its price.
Acc. to Dooley: "The law of supply states that the higher the price, the greater the quantity supplied or the lower the price, the smaller the quantity supplied."
Individual Supply Schedule
| Price of good X | Quantity Supplied |
| 5 | 0 |
| 10 | 10 |
| 15 | 20 |
| 20 | 30 |
Supply curve
∴ The supply curve (SS) indicates that as the price of X rises, so does the quantity supplied.
APPEARS IN
RELATED QUESTIONS
State the law of supply.
What are the factors governing the elasticity of supply?
What are the functions of Entrepreneur?
State and explain the elasticity of supply.
Examine the Law of Variable Proportions with the help of a diagram.
Elucidate the Laws of Returns to Scale. Illustrate.
A rightward shift in supply curve shows ______.
The Law of Supply states that other things being constant ______.
Assertion (A): Law of Supply is a qualitative statement.
Reason (R): Law of Supply indicates the magnitude of change in the quantity supplied.
The producers prefer to supply more when prices are ______.
Explain the law of supply.
With the help of a diagram state whether supply of a good is directly or inversely related to price?
What is supply function?
Which statement best expresses the Law of Supply?
Why does the Law of Supply not apply to rare goods like antiques and old coins?
Which of these situations violates the "ceteris paribus" (other things being constant) condition for the Law of Supply?
What is the relationship between price and quantity supplied described by the Law of Supply?
Which of the following is an exception to the Law of Supply?
Which factor is assumed to remain unchanged under the Law of Supply?
What does the supply curve typically look like according to the Law of Supply?
Which real-life example best illustrates the Law of Supply?
