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Write a short paragraph about supply using all of the following terms: law of supply, law of diminishing returns, supply curve, shortage, equilibrium price, surplus

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The law of supply states that as the price of a good or service increases, the quantity of the good or service supplied by producers also increases. However, this relationship is not linear and there is a point at which the law of diminishing returns sets in, meaning that the additional units of a good or service produced yield less and less additional revenue. This point is represented on a supply curve, which shows the relationship between price and quantity supplied. When the price of a good or service is too low, there may be a shortage of that good or service, which can lead to an increase in price. At the equilibrium price, the quantity supplied and quantity demanded are equal, resulting in neither a surplus or shortage. A surplus occurs when the quantity supplied exceeds the quantity demanded, leading to lower prices.

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