What is law of supply?

Question

The law of supply states that supply increases as price rises, all else being equal. Learn its meaning, assumptions, exceptions, examples, and importance.

Khyati Anand · Accepted Answer

A microeconomics law which states that the relationship between the price of a product or service is equally proportional to the quantity of the same product or service which is supplied by the suppliers and dealers in the market. In simpler language, law of supply means, if the price os product or service increases the quantity the product or service being supplied in the market will also increase and vice versa.