Law Of Supply: It refers to the relationship between price and the quantity of a good or service that firm are willing to produce.The higher the price of the product leads to more supplies and more companies making the product.
Example : I purchase Red-mi note 5 pro. The price of that mobile phone increase , suddenly mobile phone manufactures will produce more mobile phone to earn more revenue. As there will be more scope to get profit with the no. of product produced . The manufactures increase the supply. Supplying more product with different quantities with the same price increase the demand for the product .Therefore the supply of mobile phone in the market will be increased.
No comments:
Post a Comment