Definition
The law of supply states that as price rises, quantity supplied increases.
Why It Matters
It explains how producers respond to price incentives.
Example
Farmers growing more crops when prices rise.
Malone Global University
Malone Global University
Economics Glossary – Malone Global University
The law of supply states that as price rises, quantity supplied increases.
It explains how producers respond to price incentives.
Farmers growing more crops when prices rise.