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.
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| 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.
