Question

The Law of Supply states the relationship between price and quantity of a good supplied, then (Ceteris Paribus) an increase in market price will lead to?

Answer 1

The Law of Supply states that there is a positive relationship between price of a good and its quantity supplied that is If price increases, the quantity supplied also increases and if price decreases then quantity supplied also decreases, given other factors being constant.

Price(in $)	Quantity supplied (in Kg)
2	20
4	40
6	60
8	80

Here initially price is P1 and quantity supplied is Q1 now due to some reason price increases to P2 which cause quantity supplied to increase to Q2.