Question

Why is it important to understand supply and its concept?

Answer 1

1:Supply refers to various quantities of a commodity that the producers wish to sell at different possible prices of the commodity at a point of time. It helps to determine the equilibrium price and equilibrium quantity.
2:The law of supply correlates to the quantities that will be sold at certain price points. Essentially the converse of the law of demand, the supply model demonstrates that the higher the price, the higher the quantity supplied because of an increase in business revenue hinges upon more sales at higher prices.