Supply - Meaning and Law of Supply

Meaning: Supply is refers to ability and willingness to sell or produce a specific quantities of goods in a given period of time at a particular price, ceteris paribus. Ceteris paribus is a Latin phrase that means holding other factors constants while some other factors change.

Law of Supply

The law of supply states that there is a positive relationship between price of the product and quantity supplied. When the price of the product increase, the quantity supplied of that product will be increase and when the price of the product decrease, the quantity supplied of that product will be decrease, ceteris paribus.

Individual Supply and Market Supply

• Individual supply is shows the relationship between the quantity of a product supplied by a single seller and its price.

• Market supply is shows the relationship between the total quantity of a product supplied by additional all quantities supply by all seller in the market and its price.