Law of Supply

Law of Supply

A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services offered by suppliers increases, and vice versa.

Notes:

As the price of a good increases, suppliers will attempt to maximize profits by increasing the quantity of the product sold.

See also: Economies of Scale, Equilibrium, Law of Demand, Macroeconomics, Microeconomics, Supply-Side Theory