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1. What did you learn about your topic that surprised you the most?
I was surprised that the government could easily influence the law of supply and suppliers to the degree that they can.
2. Provide a real-life example of how this topic is relevant or interesting for you.
The lockdown increased prices for food which affects my parents and makes them spend their money more wisely, than even before.
3. If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?
Try and buy products when the supply is low for it for a cheaper purchase. I would give this advice to my parents.

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https://www.youtube.com/watch?v=9ml4fA_b1No

The reason i choice this video is because it gives us good visuals of the law of supply and the types related to it.

This video shows us the connections between the price and quantity of goods/services. This video also shows the types related to the law of supply. It teaches us the importance of the law and supply and also describes the supply curve and the correlation between the law of supply and how it connections with the supply curve. It overall summarizes the law of supply well, with details including factors that affect it and influences as well.

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https://courses.lumenlearning.com/suny-wmopen-introbusiness/chapter/the-law-of-supply/

I choice this video because it gives us a nice display of how the law of supply is affecting the cost of products/services and gives a good visual to represent this.

This video shows us that the relationship between is supply of a product/goods and the price has a strong relationship between each other. It shows gives us good examples that relate to the topic of the law of supply and overall summarize well the law of supply and its importance in the economy.

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Learning Outcomes

Explain the law of supply

Explain a supply curve

Explain the factors that can change supply

The law of supply states that more of a good will be provided the higher its price; less will be provided the lower its price, ceteris paribus. There is a direct relationship between price and quantity supplied.

What Is Supply?

Supply of Goods and Services

When economists talk about supply, they mean the amount of some good or service a producer is willing to supply at each price. Price is what the producer receives for selling one unit of a good or service. A rise in price almost always leads to an increase in the quantity supplied of that good or service, while a fall in price will decrease the quantity supplied. When the price of gasoline rises, for example, it encourages profit-seeking firms to take several actions: expand exploration for oil reserves; drill for more oil; invest in more pipelines and oil tankers to bring the oil to plants where it can be refined into gasoline; build new oil refineries; purchase additional pipelines and trucks to ship the gasoline to gas stations; and open more gas stations or keep existing gas stations open longer hours. Economists call this positive relationship between price and quantity supplied-that a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied-the law of supply. The law of supply, like the law of demand, assumes that all other variables that affect supply (to be explained in the next reading) are held equal.

Supply vs. Quantity Supplied

In economic terminology, supply is not the same as quantity supplied. When economists refer to supply, they mean the relationship between a range of prices and the quantities supplied at those prices, a relationship that can be illustrated with a supply curve or a supply schedule. When economists refer to quantity supplied, they mean only a certain point on the supply curve, or one quantity on the supply schedule. In short, supply refers to the curve, and quantity supplied refers to the (specific) point on the curve.

Figure 1, below, illustrates the law of supply, again using the market for gasoline as an example. Like demand, supply can be illustrated using a table or a graph. A supply schedule is a table-like Table 1, below-that shows the quantity supplied at a range of different prices. Again, price is measured in dollars per gallon of gasoline, and quantity demanded is measured in millions of gallons. A supply curve is a graphic illustration of the relationship between price, shown on the vertical axis, and quantity, shown on the horizontal axis. You can see from this curve (Figure 1) that as the price rises, quantity supplied also increases and vice versa. The supply schedule and the supply curve are just two different ways of showing the same information. Notice that the horizontal and vertical axes on the graph for the supply curve are the same as for the demand curve.

Price and Supply of Gasoline

The shape of supply curves will vary somewhat according to the product: steeper, flatter, straighter, or curved. Nearly all supply curves, however, share a basic similarity: They slope up from left to right and illustrate the law of supply. As the price rises, say, from $1.00 per gallon to $2.20 per gallon, the quantity supplied increases from 500 gallons to 720 gallons. Conversely, as the price falls, the quantity supplied decreases.

Factors Affecting Supply

How Production Costs Affect Supply

A supply curve shows how quantity supplied will change as the price rises and falls, assuming ceteris paribus, so that no other economically relevant factors are changing. If other factors relevant to supply do change, then the entire supply curve will shift. Just as a shift in demand is represented by a change in the quantity demanded at every price, a shift in supply means a change in the quantity supplied at every price.

In thinking about the factors that affect supply, remember what motivates firms: profits, which are the difference between revenues and costs. Goods and services are produced using combinations of labor, materials, and machinery, or what we call inputs (also called factors of production). If a firm faces lower costs of production, while the prices for the good or service the firm produces remain unchanged, a firm's profits go up. When a firm's profits increase, it's more motivated to produce output (goods or services), since the more it produces the more profit it will earn. So, when costs of production fall, a firm will tend to supply a larger quantity at any given price for its output. This can be shown by the supply curve shifting to the right.

Take, for example, a messenger company that delivers packages around a city. The company may find that buying gasoline is one of its main costs. If the price of gasoline falls, then the company will find it can deliver packages more cheaply than before. Since lower costs correspond to higher profits, the messenger company may now supply more of its services at any given price. For example, given the lower gasoline prices, the company can now serve a greater area, and increase its supply.

Conversely, if a firm faces higher costs of production, then it will earn lower profits at any given selling price for its products. As a result, a higher cost of production typically causes a firm to supply a smaller quantity at any given price. In this case, the supply curve shifts to the left.

Consider the supply for cars, shown by curve S ₀ in Figure 1, below. Point J indicates that if the price is $20,000, the quantity supplied will be 18 million cars. If the price rises to $22,000 per car, ceteris paribus, the quantity supplied will rise to 20 million cars, as point K on the S ₀ curve shows. The same information can be shown in table form, as in Table 1.

Table 1. Price and Shifts in Supply: A Car Example

Now imagine that the price of steel-an important component in vehicle manufacturing-rises, so that producing a car has become more expensive. At any given price for selling cars, car manufacturers will react by supplying a lower quantity. This can be shown graphically as a leftward shift of supply, from S ₀ to S ₁, which indicates that at any given price, the quantity supplied decreases. In this example, at a price of $20,000, the quantity supplied decreases from 18 million on the original supply curve (S ₀) to 16.5 million on the supply curve S ₁, which is labeled as point L.

Conversely, if the price of steel decreases, producing a car becomes less expensive. At any given price for selling cars, car manufacturers can now expect to earn higher profits, so they will supply a higher quantity. The shift of supply to the right, from S ₀ to S ₂, means that at all prices, the quantity supplied has increased. In this example, at a price of $20,000, the quantity supplied increases from 18 million on the original supply curve (S ₀) to 19.8 million on the supply curve S ₂, which is labeled M.

Other Factors That Affect Supply

In the example above, we saw that changes in the prices of inputs in the production process will affect the cost of production and thus the supply. Several other things affect the cost of production, too, such as changes in weather or other natural conditions, new technologies for production, and some government policies.

The cost of production for many agricultural products will be affected by changes in natural conditions. For example, the area of northern China that typically grows about 60 percent of the country's wheat output experienced its worst drought in at least fifty years in the second half of 2009. A drought decreases the supply of agricultural products, which means that at any given price, a lower quantity will be supplied; conversely, especially good weather would shift the supply curve to the right.

When a firm discovers a new technology that allows it to produce at a lower cost, the supply curve will shift to the right, as well. For instance, in the 1960s a major scientific effort nicknamed the Green Revolution focused on breeding improved seeds for basic crops like wheat and rice. By the early 1990s, more than two-thirds of the wheat and rice in low-income countries around the world was grown with these Green Revolution seeds-and the harvest was twice as high per acre. A technological improvement that reduces costs of production will shift supply to the right, so that a greater quantity will be produced at any given price.

Government policies can affect the cost of production and the supply curve through taxes, regulations, and subsidies. For example, the U.S. government imposes a tax on alcoholic beverages that collects about $8 billion per year from producers. Taxes are treated as costs by businesses. Higher costs decrease supply for the reasons discussed above. Other examples of policy that can affect cost are the wide array of government regulations that require firms to spend money to provide a cleaner environment or a safer workplace; complying with regulations increases costs.

A government subsidy, on the other hand, is the opposite of a tax. A subsidy occurs when the government pays a firm directly or reduces the firm's taxes if the firm carries out certain actions. From the firm's perspective, taxes or regulations are an additional cost of production that shifts supply to the left, leading the firm to produce a lower quantity at every given price. Government subsidies reduce the cost of production and increase supply at every given price, shifting supply to the right.

Worked Example: Shift in Supply

Shift in Supply Due to Production-Cost Increase

We know that a supply curve shows the minimum price a firm will accept to produce a given quantity of output. What happens to the supply curve when the cost of production goes up? Following is an example of a shift in supply due to an increase in production cost.

Step 1. Draw a graph of a supply curve for pizza. Pick a quantity (like Q ₀). If you draw a vertical line up from Q ₀ to the supply curve, you will see the price the firm chooses. An example is shown in Figure 1.

Step 2. Why did the firm choose that price and not some other? One way to think about this is that the price is composed of two parts. The first part is the average cost of production: in this case, the cost of the pizza ingredients (dough, sauce, cheese, pepperoni, and so on), the cost of the pizza oven, the rent on the shop, and the wages of the workers. The second part is the firm's desired profit, which is determined, among other factors, by the profit margins in that particular business. If you add these two parts together, you get the price the firm wishes to charge. The quantity Q ₀ and associated price P ₀ give you one point on the firm's supply curve, as shown in Figure 2.

Step 3. Now, suppose that the cost of production goes up. Perhaps cheese has become more expensive by $0.75 per pizza. If that is true, the firm will want to raise its price by the amount of the increase in cost ($0.75). Draw this point on the supply curve directly above the initial point on the curve, but $0.75 higher, as shown in Figure 3.

Step 4. Shift the supply curve through this point. You will see that an increase in cost causes a leftward shift of the supply curve so that at any price, the quantities supplied will be smaller, as shown in Figure 4.

Summary of Factors That Change Supply

Changes in the cost of inputs, natural disasters, new technologies, and the impact of government decisions all affect the cost of production. In turn, these factors affect how much firms are willing to supply at any given price.

Figure 1, below, summarizes factors that change the supply of goods and services. Notice that a change in the price of the product itself is not among the factors that shift the supply curve. Although a change in price of a good or service typically causes a change in quantity supplied or a movement along the supply curve for that specific good or service, it does not cause the supply curve itself to shift.

Because demand and supply curves appear on a two-dimensional diagram with only price and quantity on the axes, an unwary visitor to the land of economics might be fooled into believing that economics is about only four topics: demand, supply, price, and quantity. However, demand and supply are really "umbrella" concepts: demand covers all the factors that affect demand, and supply covers all the factors that affect supply. Factors other than price that affect demand and supply are included by using shifts in the demand or the supply curve. In this way, the two-dimensional demand and supply model becomes a powerful tool for analyzing a wide range of economic circumstances.

Try It: Supply of Food Trucks

Play the simulation below multiple times to see how different choices lead to different outcomes. All simulations allow unlimited attempts so that you can gain experience applying the concepts.

Check Your Understanding

Answer the question(s) below to see how well you understand the topics covered above. This short quiz does not count toward your grade in the class, and you can retake it an unlimited number of times.

Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.

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Explain the law of supply Explain a supply curve Explain the factors that can change supply The law of supply states that more of a good will be provided the higher its price; less will be provided the lower its price, ceteris paribus. There is a direct relationship between price and quantity supplied.

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https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/basic-economics-concepts-macro/supply/v/law-of-supply

I choice this video because it gives us a good demonstration of the law of supply and its a good source for general education.

This video describes and defines the law of supply which the connection between the supply of a product/goods and how its related to the price. It also shows a visual representation of this with more in depth learning examples to help us fully understand the law of supply.

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https://www.futurelearn.com/info/courses/what-is-economics-in-the-world-of-global-logistics/0/steps/95725

The website below defines the law of supply as a positive correlation between the supply of the goods/services and the cost of it. It shows a graph to show visually how this is the case, where the quantity supplied and the cost both rise in a similar manner. It also talks about what determinants of the supply and how other influences can change the scope of the supply at hand. It also talks about how the government can directly affect suppliers which shows how many influences can affect of overall supply of goods/services.

I choice this website because it displays the how other sources can affect the supply of products/goods in a reasonable manner.

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Now, we'll define the law of supply, which states that there is a direct and positive relationship between price and quantity supplied (Mas-Colell et al., 1995, p. 138).

Put another way, quantity supplied is the amount of some goods that sellers are willing and able to sell. If a seller or producer notices that more of their goods are being sold, they will make more. This makes the supply line slope in the opposite direction to demand.

Why does the line slope upwards? This is due to opportunity cost, because as price rises there is an incentive to produce more goods. A supplier wants to make more profit, so focuses their resources on the most profitable activities. As the quantity supplied increases, resources will become more expensive because they become more scarce. This then increases costs, which are passed onto the buyers.

The opposite is true when price falls, which leads to the supplier supplying less as there's no profit to be made.

Determinants of supply

Just as there are determinants in demand, there are determinants in supply.

Determinants of supply (ie things that can cause the supply curve to shift left or right) include:

Input and raw material prices

Government policy

Technology

Expectations

Prices of related substitutes or complementary goods

Number of competing producers in the same market

You might think these are the same as the determinants of demand, but the main differences are raw material costs, government policy and the number of suppliers. All of these can shift the supply line to the left or right.

Government policies can have a large effect on suppliers. Transport infrastructure is often dependent on government policy and funding. The three common tools used by governments include:

Direct provision of transport services, eg bus services

Indirectly encouraging transport services with taxes and subsidies

Regulatory and legislative measures allowing or disallowing certain market behaviours

Supply elasticity

As with demand, elasticity affects the slope of the line and changes in price move along the supply line.

Supply elasticity is the same as demand elasticity and can be represented on a graph as a horizontal line because it's infinite. Supply inelasticity on a graph is a vertical line. The factors that affect changes in price of supply are time to produce, stock, spare capacity and mobility of factors of production.

If these factors are flexible, then supply is elastic. Goods with a short shelf life, like fresh fruit, are inelastic, as time moving them to consumers is short, and stock and spare capacity is low. Goods with a long shelf life, such as a can of baked beans, are more elastic.

Your task

Elasticity of price is all about how sensitive price is to changes in demand or supply.

Discuss in the comments how CV1Logistics is affected by price elasticity and other determinants that could move the position of the supply or demand lines.

References
Mas-Colell, A., Whinston, M. D., & Green, J. R. (1995). Microeconomic theory. Oxford University Press.

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Now, we'll define the law of supply, which states that there is a direct and positive relationship between price and quantity supplied (Mas-Colell et al., 1995, p. 138). Put another way, quantity supplied is the amount of some goods that sellers are willing and able to sell.

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https://www.ratespy.com/who-repealed-the-law-of-supply-and-demand-opinion-091615871

In this article it talks about how the law of supply and how the housing prices for Canadians continues to rise up, making it more difficult to purchase a house without a decent mortgage rate. It talks about how there's a shortage of houses that are at a reasonable price. It also talks about how someone will always be at a disadvantage in this situation for the average consumer, and how the large cities need changes that can help assist in this issue since they are the ones who are impacted by this the most.

I choice this website because it represents issues in Canada the most compared to the other webites

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If you want to pay less mortgage interest, it helps to have a cheaper home. If you want a cheaper home, it helps if there are more homes than people want to buy. Cue the Economics 101 reference.

Yet, there are some who'd like us to believe that demand, not supply, is the problem. As if not having enough homes to satisfy high demand is irrelevant. As if demand - i.e., people who want a roof over their heads - can be magically diminished through policy to keep prices lower indefinitely, despite population growth, wide-open immigration floodgates (in non-COVID times) and so on. Such economically preposterous attempts at proselytizing the ignorant rank about as high on the absurdity meter as one can get.

Why is the price of anything bid to extremes? Because there's not enough of it, or there's a perception that there's not enough of it. This characterizes Canada's housing market to a T.

It's an entirely different conversation when demand and supply are in equilibrium. One could be offered minus 2% interest rates. Banks could pay you $500 a month on your mortgage, and if there were hypothetically enough suitable homes for every single Canadian household in the locations where they wanted to live, that extraordinary supply-inducing interest rate would barely move home prices.

Back in reality, COVID has taken Canada's supply scarcity to a whole new level. "There were just 2.6 months of inventory on a national basis at the end of August 2020 - the lowest reading on record...," reports CREA. "At the local market level, a number of Ontario markets are now into weeks of inventory rather than months." It's hard to convey how abnormal that is.

Until this problem is corrected, prices could keep rising like a helium balloon. But, knowing that credit availability and falling rates fuel home prices, is the answer then to crimp demand through mortgage tightening or artificial, ill-timed rate hikes? Certainly not. Not unless the goals are creating imbalances in the rental market and fuelling unemployment.

Most credible sources, including CMHC, know that regional shortages of affordable housing (particularly high-density housing) is a key problem. The likes of the Fraser Institute further corroborate the obvious: "...Demand-reducing policies have seemingly done little to restore broad housing affordability. The laws of supply and demand apply to housing, like any other good. By focusing primarily on demand, policy-makers ignore half of the equation..."

On that note, an IMF report last October had a radical solution to Canada's housing crisis: "To Tackle Housing Affordability in Canada, Build More Houses." Hey, they might be onto something.

In truth, there's no easy cure that doesn't disadvantage someone. Real progress takes hard fixes, like incentivizing more homes within tolerable commutes to job centres, building ultra-high-speed transit to regions with cheaper land, or other capital, time or bureaucratic-intensive solutions. Or maybe it takes more out-of-the-box thinking, like government land acquisition partnerships or near-interest free financing to developers that build strategic high-density housing in/near public transportation corridors.

The Department of Finance has said it many times; home construction is "needed to address...housing supply shortages in Canada, particularly in our largest cities." The 2019 Federal Budget stated that increasing the supply of housing "is the most effective way to address affordability in the long run." Righto. Because whatever the solution, supply is the problem, and it has been for 20 years.
Views expressed here are solely those of the author and do not necessarily reflect the opinions of any other party.

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Who Repealed the Law of Supply and Demand?

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If you want to pay less mortgage interest, it helps to have a cheaper home. If you want a cheaper home, it helps if there are more homes than people want to buy. Cue the Economics 101 reference. Yet, there are some who'd like us to believe that demand, not supply, is the problem....

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Today you will be learning about the details of the law of supply, and information pertaining to the law of supply.

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https://forestrypedia.com/law-of-supply/

The website goes into detail about the definition of the law of supply, which the price and supply being connected and shown to react in a similar way with both the price and supply using rising if either one rises and vice versa. Also in this site is also describes the advantages of the law of supply and how is fundamental to learn the law of supply in order to be knowledgeable in the subject of economics and how it shows the connections between the price and supply, showing us that learning about this topic is important.

I choice this website because it shows the advantages of knowing the law of supply and it explains it well.

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Law of Supply

There is the direct relationship between the price of a commodity and its quantity offered for sale over a specified period of time. When the price of a goods rises, other things remaining the same, its quantity which is offered for sale increases as and price falls, the amount available for sale decreases. This relationship between price and the quantities which suppliers are prepared to offer for sale is called the law of supply.

The law of supply, in short, states that ceteris paribus sellers supply more goods at a higher price than they are willing at a lower price.

The supply function is now explained with the help of a schedule and a curve.
Market Supply Schedule of a Commodity:
In the table above, the produce are able and willing to offer for sale 100 units of a commodity at price of $4. As the price falls, the quantity offered for sale decreases. At price of $1, the quantity offered for sale is only 40 units.

The market supply data of the commodity x as shown in the supply schedule is now presented graphically.

In the figure (5.1) price is plotted on the vertical axis OY and the quantity supplied on the horizontal axis OX. The four points d, c, b, and a show each price-quantity combination. The supply curve SS/ slopes upward from left to right indicating that less quantity is offered for sale at the lower price and more at higher prices by the sellers not supply curve is usually positively sloped.
Formula for Law of Supply/Supply Function
Thesupply function can also be expressed in symbols.
QxS = Φ (Px Tech, Si, Fn, X,........)
Qxs = Quantity supplied of commodity x by the producers.

Φ = Function of.

Px = Price of commodity x.

S = Supplies of inputs.

F = Features of nature.

= Bar on the top of last four non-price factors indicates that these variables also affect the supply but they are held constant.

The law of supply is based on a moving quantity of materials available to meet a particular need. Supply is the source of economic activity. Supply, or the lack of it, also dictates prices. Cost of scarce supply goods increases in relation to the shortages. Supply can be used to measure demand. Oversupply results in lack of customers. An oversupply is often a loss, for that reason. Undersupply generates a demand in the form of orders or secondary sales at higher prices.

If ten people want to buy a pen, and there's only one pen, the sale will be based on the level of demand for the pen. The supply function requires more pens, which generates more production to meet demand.

If the goods are perishable in nature and the seller cannot wait for the rise in price. Seller may have to offer all of his goods at a current market price because he may not take risk of getting his commodity perished.

A government may enforce the firms and producers to offer production at prevailing market price. In such a situation producer may not be able to wait for the rise in price.

If a number of alternative products are available in the market and customers tend to buy those products to fulfill their needs, the producer will have to shift to transform his resources to the production of those products.

Production costs like raw materials, labor costs, overhead costs and selling and administration may increase along with the increase in price. Such situations may not allow the producer to offer his products at a particular increased price.

Limitations/Exceptions of Law of Supply

Exceptions that affect the law of supply may include:

(i) Ability to move stock.

(ii) Legislation restricting quantity.

(iii) External factors that influence your industry.

1. Supply responds to changes in prices differently for different goods, depending on their elasticity or inelasticity. Goods are elastic when a modest change in price leads to a large change in the quantity supplied. In contrast, goods are inelastic when a change in price leads to relatively no response to the quantity supplied. An example of an elastic good would be soft drinks, whereas an example of an inelastic service would be physicians' services. Producers will be more likely to want to supply more inelastic goods such as gas because they will most likely profit more off of them.

2. Law of supply is an economic principle that states that there is a direct relationship between the price of a good and how much producers are willing to supply.

3. As the price of a good increases, suppliers will want to supply more of it. However, as the price of a good decreases, suppliers will not want to supply as much of it. For producers to want to produce a good, the incentive of profit must be greater than the opportunity cost of production, the total cost of producing the good, which includes the resources and value of the other goods that could have been produced instead.

4. Entrepreneurs enter business ventures with the intention of making a profit. A profit occurs when the revenues from the goods a producer supplies exceeds the opportunity cost of their production. However, consumers must value the goods at the price offered in order for them to buy them. Therefore, in order for a consumer to be willing to pay a price for a good higher than its cost of production, he or she must value that good more than the other goods that could have been produced instead. So supplier's profits are dependent on consumer demands and values. However, when suppliers do not earn enough revenue to cover the cost of production of the good, they incur a loss. Losses occur whenever consumers value a good less than the other goods that could have been produced with the same resources.

Technology helps a producer to minimize his cost of production.

Resource supplies

The producer also has to pay for other resources such as raw materials and labor. if his money is short on supplying a certain number of products because of an increase in resource supplies, then he has to reduce his supply.

Tax/ Subsidy

A producer aims to maximize his profit, but an increase in tax will only increase his expenses, decreasing his capacity to buy resource supplies and forcing him to reduce his supply.

A producer may not only produce on product but other products as well. A producer's money is limited and if he increases his supply in one product, he would have to decrease his supply in the other product, no unless his sales increase.

Qxs = Φ (Px) Ceteris Paribus
In economics, the term is used as a shorthand for indicating the effect of one economic variable on another, holding constant all other variables that may affect the second variable.
For Correction and Improvements please use the comments section below.
NJMH is working as Deputy Conservator of Forests in Balochistan Forest & Wildlife Department (BFWD). He is the CEO of Tech Urdu (techurdu.net) Forestrypedia (forestrypedia.com), Majestic Pakistan (majesticpakistan.pk), All Pak Notifications (allpaknotifications.com), Essayspedia, etc & their YouTube Channels). He is an Environmentalist, Blogger, YouTuber, Developer & Vlogger.

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There is the direct relationship between the price of a commodity and its quantity offered for sale over a specified period of time. When the price of a goods rises, other things remaining the same, its quantity which is offered for sale increases as and price falls, the amount available for sale decreases.

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Source: https://www.bookmyessay.com/law-of-supply-assignment/

The image below shows two arrows representing how the price and supply of a product are directly correlated and how if the price goes up the supply as well increases, and when the price goes down the supply of the product/good decreases.

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https://www.investopedia.com/terms/l/lawofsupply.asp

The website gives us a general description of the microeconomic law, specifically the law of supply and defines it as the cost of a good/service rises up, the amount of the service/will also increase, this also applies the other way around. The website gives an example of a graph that gives us a demonstration on how the law of supply works using a supply curve and the correlation between the amount of services produce and price rising. It ends off with the website giving us real life examples.

I choice this video/Website because it clearly explains the law of supply with simple examples that are relatable to real life.

In the video it defines the law of supply and using some visual examples to better illustrate the law of supply using objects such as boxes and showing how the increase of services/goods also is connected with a higher increase of prices. It also shows us this as well in a similar manner to the website with a graph to display the law of supply and correlation between increases between prices and good/services. It gives some additional info about the law of supply in how in the real world the variables aren't always constant and that is more of a theoretical concept, it also states how other things can affect the pricing of the supply.

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What Is the Law of Supply?

The law of supply is a microeconomic law. It states that, all other factors being equal, as the price of a good or service increases, the quantity of that good or service that suppliers offer will increase, and vice versa.

In plain terms, this law means that as the price of an item goes up, suppliers will attempt to maximize their profits by increasing the number of that item that they sell.

Key Takeaways

Understanding the Law of Supply

The chart below depicts the law of supply using a supply curve, which is upward sloping. A, B, and C are points on the supply curve. Each point on the curve reflects a direct correlation between quantity supplied (Q) and price (P). So, at point A, the quantity supplied will be Q1 and the price will be P1, and so on.

The supply curve is upward sloping because, over time, suppliers can choose how much of their goods to produce and later bring to market. At any given point in time, however, the supply that sellers bring to market is fixed, and sellers simply face a decision to either sell or withhold their stock from a sale; consumer demand sets the price, and sellers can only charge what the market will bear.

If consumer demand rises over time, the price will rise, and suppliers can choose to devote new resources to production (or new suppliers can enter the market), which increases the quantity supplied. Demand ultimately sets the price in a competitive market; supplier response to the price they can expect to receive sets the quantity supplied.

The law of supply is one of the most fundamental concepts in economics. It works with the law of demand to explain how market economies allocate resources and determine the prices of goods and services.

Examples of the Law of Supply

The law of supply summarizes the effect price changes have on producer behavior. For example, a business will make more video game systems if the price of those systems increases. The opposite is true if the price of video game systems decreases. The company might supply 1 million systems if the price is $200 each, but if the price increases to $300, they might supply 1.5 million systems.

To further illustrate this concept, consider how gas prices work. When the price of gasoline rises, it encourages profit-seeking firms to take actions to expand supply, such as:

Increase exploration for oil reserves.

Drill for more oil.

Invest in more pipelines and tankers to bring the oil to plants where it can be refined into gasoline.

Build new oil refineries.

Purchase additional pipelines and trucks to ship the gasoline to gas stations.

Open more gas stations.

Keep existing gas stations open longer hours.

The law of supply is so intuitive that you may not even be aware of all the examples around you. For example, when college students learn that computer engineering jobs pay more than English professor jobs, the supply of students with majors in computer engineering increases. If consumers start paying more for cupcakes than for donuts, bakeries will increase their output of cupcakes and reduce their output of donuts to increase their profits.

The law of supply can even impact your own employment. When your employer pays time and a half for overtime, the number of hours you are willing to supply for work might increase.

What Are the Types of Law of Supply?

There are five types of supply-market supply, short-term supply, long-term supply, joint supply, and composite supply. Meanwhile, there are two types of supply curves-individual supply curves and market supply curves. Individual supply curves graph the individual supply schedule, while market supply curves represent the market supply schedule.

What Factors Affect Supply?

Supply is influenced by prices and consumer demand. The number of suppliers available, the level of competition, the state of technology, and the presence of government support or restriction will play important roles. For certain products like agricultural commodities, supply is also impacted by factors such as weather and crop yields.

What Is the Law of Demand?

The law of demand is a fundamental principle of economics that states that at a higher price consumers will demand a lower quantity of a good, and vice-versa.

What Is Supply and Demand?

The law of supply and demand outlines the interaction between a buyer and a seller of a resource. Supply and demand says that sellers will supply less of a product or resource as price decreases, while buyers will buy more, and vice versa, until an equilibrium price and quantity is reached. It incorporates both the law of supply and the law of demand.

The Bottom Line

The law of supply states that a higher price for a good or service will lead producers to supply more of that good or service to the market. This is because businesses want to increase their profits. When they can get a higher price for something, they will produce more of it than they will of other, lower-priced goods and services.

On the other hand, if prices fall, suppliers won't produce as much. The law of supply is one part of the law of supply and demand.

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The Law of Supply Explained, With the Curve, Types, and Examples

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The law of supply in economics states that as the price of a good or service increases, the quantity of goods or services increases and vice versa. Learn more.

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Source: https://www.investopedia.com/terms/l/lawofsupply.asp

The image here displays how the as the supply of a goods/services increase the prices steadily goes up as well. Showing that there's a direct correlation between  the amount of a product supplied and price eventually rising up