The law of supply states that the price of services and goods increases, its factors being equal, the offer of quantity goods and services increases.
If the price goes up the supplier maximizes profits by way of increasing the quantity which is being offered for sale. Factors which include supply are,
1. Cost of production. When the supply of a certain product decreases then its cost product increases.
2. Natural condition. Climate mostly affects supply of different products. For example, when monsoon comes, there is an increase in agriculture products.
3. Technology. When technology is high there is increase in products and also increase in supply.
A good example which illustrates the factors of law of supply, lets say when a student who is in college finds that a course like actuarial science pays well than professor job then there will be supply of students and actuarial science will increase mor student who will be doing it.
Read more on Brainly.com - https://brainly.com/question/11311284#readmore
The law of supply is a key postulate of economic law which declares that different circumstances held steady, an appreciation in price effects in an extension in volume supplied. In different terms, there is a linear correlation between cost and supply: quantities counter in an identical way as the price fluctuates.
Variations in production cost and related factors can make a complete supply curve to shift right or left. This makes a greater or moderate amount to be outfitted at a subsidized price. The ceteris paribus theory: Supply curves compare prices and quantities provided considering no other factors vary.
In the instance of the car shown in the picture, we noticed that variations in the costs of inputs in the generation process will change the cost of reproduction and thus the supply. Many additional factors change the value of production, excessively.
