Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsSupply2 Marks
Question
What is law of supply ?
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Answer
All factors remaining constant, at a particular price, at a particular time, the willingness and capacity of the firm to sell goods is called supply. The supply is not created if the firm has no capacity or no willingness to sell the product.
The law of supply explains the direction of change in supply due in price. The change in price is the reason and the change in supply is the result in the law of supply.
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