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  Theory of Supply, Law of Supply Homework Help

Definition of theory of supply

Supply refers to the quantity of the commodity which is offered for sale at a given price and at a particular instant of time.

Law of Supply

Definition

If all the other things stay constant (ceteris paribus), the higher the price, the larger will be the quantity supplied and vice versa.

Individual Supply Schedule and Curve

Definition -  Supply schedule shows the relationship between quantity supplied of a good and the different price       level of that commodity.

-           Supply curve is the graphical presentation of the supply schedule.

Individual Supply Schedule

Price per kg ($)

16

14

12

10

8

6

4

2

Qty. supplied (kg)

40

35

30

25

20

15

10

5

833_supply cuve.png

Market Supply Curve

 

 

698_shift curve1.png

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