Supply:
The quantity which firms are willing
and able to supply at the prevailing market price.
Law of Supply:
As the price of a good rises,
ceteris paribus, supply of the good extends and conversely…
As the price of a good falls,
ceteris paribus, supply of the good contracts.
Note: Ceteris paribus: a Latin expression which means ‘other things
remaining equal’
Supply Curve:
As prices rises from Rs. 10 to Rs.
20 the quantity supplied extends from 50 to 120 units.
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