The Law of Supply helps us understand how prices in the market are set. It shows us how much of a product is made based on its price. Let’s break it down:
Direct Relationship: When prices go up, sellers want to make and sell more of the product.
Supply Curve: The supply curve looks like a hill going up. This shape shows that as prices increase, the amount produced also goes up.
Market Prices: When there’s more supply and people still want to buy, it helps decide the market price.
So, it's all about finding a balance between what sellers want to give and what buyers want to buy!
The Law of Supply helps us understand how prices in the market are set. It shows us how much of a product is made based on its price. Let’s break it down:
Direct Relationship: When prices go up, sellers want to make and sell more of the product.
Supply Curve: The supply curve looks like a hill going up. This shape shows that as prices increase, the amount produced also goes up.
Market Prices: When there’s more supply and people still want to buy, it helps decide the market price.
So, it's all about finding a balance between what sellers want to give and what buyers want to buy!