oboloo Glossary

Law Of Supply Explained

oboloo Glossary

Law Of Supply Explained

The Law of Supply is an economic principle that states that a producer will increase their production if the price of their product increases. In other words, when a higher price for goods or services incentivizes producers to create more, supply increases. This leads to the greater availability of products or services and a reduction in prices. Therefore, the Law of Supply reflects the relationship between prices and the quantity produced.