Law Of Supply

Dictionary Says

Definition of 'Law Of Supply'

A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services offered by suppliers increases and vice versa.

Law Of Supply
Investopedia Says

Investopedia explains 'Law Of Supply'

As the price of a good increases, suppliers will attempt to maximize profits by increasing the quantity of the product sold.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Law Of Demand

    A microeconomic ...
  2. Microeconomics

    The branch of ...
  3. Economies Of Scale

    The increase in ...
  4. Supply-Side Theory

    An economic ...
  5. Macroeconomics

    The field of ...
  6. Equilibrium

    The state in ...
  7. Change In Supply

    A term used in ...
  8. Supply Chain

    The network ...
  9. Recession

    A significant ...
  10. Theory Of Price

    An economic ...

Articles Of Interest

  1. Economics Basics

    Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
  2. Understanding Supply-Side Economics

    Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
  3. Is Growth Always A Good Thing?

    Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble.
  4. The Impact Unpaid Internships Have On The Labor Market

    The dramatic increase in unpaid internships has given rise to favorable and unfavorable arguments based on their impact on the students/interns, the labor force and the economy as a whole.
  5. A Primer On Inflation

    Inflation has a negative connotation, but is it all bad or does it offer some tangible benefits?
  6. The Uncertainty Of Economics: Exploring The Dismal Science

    Learning about the study of economics can help you understand why you face contradictions in the market.
  7. Understanding Interest Rates, Inflation And The Bond Market

    Get to know the relationships that determine a bond's price and its payout.
  8. A Silver Primer

    Find out what affects the price of silver, the types of investments that can be made and the methods in which it is traded.
  9. The Greatest Currency Trades Ever Made

    These speculators took big positions - and scored huge profits - in the currency market.
  10. Do Deflationary Shocks Help Or Hurt The Economy?

    Find out how deflationary shocks can both benefit and hurt consumers and businesses.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center