SUPPLY / LAW OF SUPPLY

SUPPLY: Supply is of the scarce goods. It is the amount of a commodity that sellers are able and willing to offer for sale at different prices per unit of time. In the words of Meyer “ supply is a schedule of the amount of a good that would be offered for sale at all possible prices at any period of time e.g a day week and so on.

LAW OF SUPPLY

There is a direct relationship between the price of a commodity and its quantity offered for sale over a specified period of time. When the price of a goods rises other things remaining the same its quantity which is offered for sale increases and as price falls the amount available for sale decreases. This relationship between prices and the quantities which suppliers are prepared to offer for sale is called the law of supply. The law of supply in short states that” ceteris paribus sellers supply more goods at a higher price than they are willing at a lower price.