Supply of a commodity can be defined as the amount of goods that producers are willing to supply / sell at a given price.
Supply and Price
Price usually is a major determinant in the quantity supplied. In virtually all cases supply increases as price increases and vice versa.
This is because producers want to make profit.
- If the good is sold at a high price they want more quantities of it to be sold and they will make
- and if it is sold at a lower price they will either make very less profit or a loss.
Supply curve shows the relationship between supply and price.
supply curve displays the quantity supplied on the x-axis as the independent variable and price on the y-axis as the dependent variable.
**If you like it, then please leave a comment