What Does the Law of Supply State?

In economics, the law of supply states that, considering all aspects equal, the price of a marketed good or service is directly proportional to the quantity supplied. As the price increases, the quantity supplied also increases. Conversely, a decrease in the price results in a decrease in the quantity.

The law of supply, along with the law of demand, comprise the two fundamental laws in economics. Supply refers to the total amount of produced commodities or services, while demand pertains to the quantity of certain products or services desired by consumers.The law of supply sets constraints on the buyers, while the law of demand restricts the producers.