Saturday, August 4, 2018

LAW OF SUPPLY

The amount of good that seller are willing or able to sell that is called quantity supplied. There are many way to find quantity supplied of goods. But price plays major role in our analysis.
               If price of a good is increase then business of that is profitable. So seller of that good works many time and hires many workers.
                In the other hand if price of good decrease then business of that good is less profitable. So seller produces less goods and some seller shut down theire business as their quantity supplied is zero.

         The relationship between price and quantity supplied is called LAW OF SUPPLY.
       Example- in marriage season the price of saree is increase as demand of saree is too high that time so business of this good is profitable and businessman opens shop more time and hire many salesmen. So quantity of supply is high also.
         In simple word if price of a good is increase then quantity of supplied of good is going to high and if price of good is decrease then quantity of supplied of good is going to less.

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