Law of supply

Law of supply

There are two types of power or forces which manipulate the rate – demand and supply. Demand is one side which is related with house-hold and they do not have a direct connection with price. If any-thing have a high price so that demand is automatically have on low or high demand on low price.

Law of supply

Supply is another side which is also balanced by money and supplier interest. Supply is simply define that different - 2 quantity which a seller want to sale on different price list. Supply also related with a given time and given price list. Every supplier wants to sale more goods on high price.

On other words – supply has a direct co-relationship within price and supply. If any goods and supply have a high price than supplier increase their supply. If any product has a low price than supplier decrease their supply. For example – if apple have a price of Rs 10/kg then we supply 50 kg, on Rs 20/kg – 100 kg, on Rs 30/kg – 200 kg, on Rs 40/kg – 300 kg, on Rs 50/kg – 400 kg. if price increased from P to P1 than quantity also increased by Q to Q1.