Law of Supply
What Does Law of Supply Mean?
A microeconomic law that states that all things being equal, as the price of a good or service increases, the quantity of that good or service offered by suppliers increases and vice versa.
Investopedia explains Law of Supply
As the price of a good increases, suppliers will attempt to maximize profits by increasing the quantity of the product sold.
Related Terms:
• Economies of Scale
• Law of Demand
• Macroeconomics
• Quantitative Analysis
• Technical Analysis
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