Supply responds to change in prices differently for different goods, depending on their elasticity or inelasticity. If goods are elastic then a modest change in price leads to a large …
Read More »Monthly Archives: November 2017
Limitations/Exceptions of Law of Supply
Limited Supply: There are some rare things the supply of which is limited and inelastic. In this case if price increase supply cannot be increased. Such as the picture of …
Read More »Assumptions of Law of Supply
(i) Nature of Goods. If the goods are perishable in nature then the saler cannot wait for the rise in price. Seller may have to offer all of his goods …
Read More »Example of law of Supply
The law of supply is based on a moving quantity of materials available to meet a particular need. Supply is the source of economic activity. Supply, or the lack of …
Read More »Law of Supply Curve/Diagram
The market supply data of the commodity X as shown in the supply schedule is now presented graphically. …
Read More »Supply Function
The supply function is now explained with the help of a schedule and a curve. Supply Schedule of a commodity: Price per unit (Px) 5 4 3 2 1 Quantity …
Read More »Definition of Law of Supply
Definition of Law of Supply: There is a direct relationship between the price of a commodity and its quality offered for sale over a specified period of time. When the …
Read More »Definition of supply
It is the amount of a commodity that sellers are able and willing to offer for sale at different prices per unit of time. In the words of Meyer: “Supply …
Read More »Slope of the demand curve
The demand curve generally slopes downward from left to right. It has a negative slope because the two important variables price and quantity work in opposite direction. As the price …
Read More »Factors causing Changes in Demand/ Determinants of Demand
Factors causing Changes in Demand/ Determinants of Demand: While explaining the law of demand, we have stated that, other things remaining the same (ceteris paribus), the demand for a commodity …
Read More »