Law Of Supply

What Does Law Of Supply Mean?
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.

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.

Filed Under: Economics

Related Terms

Change In Supply
Economies Of Scale
Equilibrium
Law Of Demand
Macroeconomics
Microeconomics
Recession
Supply Chain
Supply-Side Theory
Theory Of Price
More Related Terms

Related Links

Economics Basics - Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
Understanding Supply-Side Economics - Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.

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