Law of Supply

Law of supply is stated as follows: Other things remaining the same, as the price of a commodity raises its supply is extended, and as the price falls its supply is contracted. The quantity offered for sale varies directly with a price i.e., higher the price the larger is the supply, and vice versa. Thus, there is a positive or direct relationship between the price and quantity of a commodity supplied. The supply curve, as shown in the figure, slopes upward from left to right.