Law Of Supply

A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services offered by suppliers increases and vice versa.

Law Of Supply

As the price of a good increases, suppliers will attempt to maximize profits by increasing the quantity of the product sold.


Investment dictionary. . 2012.

Look at other dictionaries:

  • law of supply — Supply exhibits an inverse relationship to price. If all other factors hold constant, an increase in supply causes a decreased price, while a decrease in supply causes an increased price. The CENTER ONLINE Futures Glossary …   Financial and business terms

  • Law Of Supply And Demand — A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply and demand defines the effect that the availability of a particular product and the desire (or demand) for that product has… …   Investment dictionary

  • law of supply and demand — a statement in economics: the competitive price that clears the market for a commodity is determined through the interaction of offers and demands * * * law of supply and demand noun The economic theory that the price of an item at a particular… …   Useful english dictionary

  • law of supply and demand — noun the economic principle that the price of a good or a service is determined by the forces of supply and demand so that, all other things being equal, an increase in demand causes the price to rise, while an increase in supply causes the price …   Australian English dictionary

  • law of supply and demand — theory that there should be a parity between the request and supply of products in the marketplace …   English contemporary dictionary

  • law of supply and demand — Gen Mgt see supply and demand …   The ultimate business dictionary

  • law of supply and demand — /ˌlɔ:r əv səˌplaɪ ən dɪ mɑ:nd/ noun a general rule that the amount of a product which is available is related to the needs of potential customers …   Marketing dictionary in english

  • law of supply and demand — /ˌlɔ:r əv səˌplaɪ ən dɪ mɑ:nd/ noun a general rule that the amount of a product which is available is related to the needs of potential customers …   Dictionary of banking and finance

  • supply — I verb accommodate with, accouter, administer, afford, bestow, cater, contribute, deal out, deliver, distribute, endow, endue, equip, feed, fill up, fit out, furnish, give, grant, invest, lavish, maintain, minister, ministrare, oblige, outfit,… …   Law dictionary

  • supply accommodations for — index lodge (house) Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

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