Question
Supply is directly related to price.
✓
Answer
Yes, I agree with this statement.
- According to the Law of Supply, other things being equal, the supply varies directly with its price.
- More quantity is offered for sale at a higher price and less is offered for sale at a lower price.
- So supply is directly related to its price.
- In order to earn a reasonable profit, the sellers tries to sells more at a higher price and less at a lower price.
So the supply curve slopes upwards. It has a positive slope. - Thus, the supply is directly related to price.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
National Income estimates are not accurate in India.
Utility means not usefulness.
AR is always more than TR.
Demand curve slopes downward from left to right.
Utility of same commodity for two c persons is different.
For the period of depression, deficit budget is prepared.
Index numbers can be constructed without the base year.
When the MU is zero, TU is maximum.
Agricultural products are exceptions to the law of supply.
Income from second hand sale of goods is excluded from National Income.