The law of supply is a microeconomic principle about the production level that suppliers can manufacture at different selling prices. It states that keeping other factors constant, as the price of a product or service rises, the production will rise, and vice versa. This means that suppliers will produce more of a product if the profit is known to be higher.
<em>The law of supply demonstrates the behaviors of producers, when they supply Goods to consumers.</em>
Explanation:
<em>The law of supply and demand is a theory that describes the interaction between the buyers for that resource and sellers of a resource.</em>
<em>The theory further explains what effect the relationship between the accessibility of a particular product and the wants (or demand) for that product has on its price.</em>
<em>Generally, the lower supply and the higher demand increase in price and vice versa.</em>
