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
5
Market Supply Curve
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