why more commodity is supplied at a higher price?give acc. to 6 marks question?
Dear student,
Supply refers to the quantity of commodity that is offered for sale at a particular price.
The most important factor determining the supply of a product is its price. Price and supply of a product are directly related, i.e. with increase in price supply increases and vice versa. More commodity is supplied at a higher price because at higher prices there are higher chances of making profit which induces firm to offer more to market for sale.
Regards
Supply refers to the quantity of commodity that is offered for sale at a particular price.
The most important factor determining the supply of a product is its price. Price and supply of a product are directly related, i.e. with increase in price supply increases and vice versa. More commodity is supplied at a higher price because at higher prices there are higher chances of making profit which induces firm to offer more to market for sale.
Regards