Question

What is the law of supply? Give an example of how you have observed the law of supply at work (in action). What is the relationship between the law of supply and the supply curve?

Answer 1

Answer:

The supply curve shows a positive relationship between price and quantity supplied.

Explanation:

The law of supply states that the price and supply of quantity are positively related when other things are constant. That means at a higher price, the supply is higher and at lower price supply is lower.

While at the work station we can see the law of supply that if the price of mobile phone increases then the supply of phones will also increase or if the price goes down then supply will also go down.

The law of supply and the supply curve relates positively to each other because the law of supply indicates that the supply increases when price increases. Similarly, the supply curve shows a positive relationship between price and quantity supplied.