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What is the relationship between the price of a product and the quantity supplied?

User NANNAV
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2 Answers

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19 votes

Answer:

There is a fundamental law in economics called the law of supply and demand. It states that when prices for one good increase, while the prices for other goods stay the same, quantity supplied increases and quantity demanded decreases. This relationship can be seen on a graph created by economists called "demand curve," where the curve slopes down and to the right.

Step-by-step explanation:

In economics, the price of a product is determined by the intersection between supply and demand. Demand, of course, varies with factors including time of year and economic growth. Supply will also change with variations in weather conditions and fluctuations in crop production rates. In general, producers want to get as close to this point as they can without going over it where they’ll create more goods than people are willing to buy at that particular price point or time period. This fallacy would result in a surplus which could not be sold off on the market at all because customers do not have enough purchasing power for it even though it is being offered for sale too cheap.

User Jeni
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16 votes
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Answer:

Price and quantity supplied move in the same direction; as price decreases, quantity supplied decreases and as price increases, quantity supplied increases.

Step-by-step explanation:

User Max Nanasy
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