Quick Definition

The law of supply states that, all else being equal, an increase in price results in an increase in the quantity supplied.

Examples

• 1As the price of gold increases, mining companies are incentivized to increase production.
• 2When real estate prices rise, property owners may be more likely to sell their properties, increasing the supply on the market.
• 3A surge in the price of wheat encourages farmers to plant more wheat instead of other crops, boosting the supply of wheat.

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