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WEL COME
TO
LAW OF SUPPLY
Content
 What is law of supply
Supply curve analysis
Assumption
Conclusion
Presented by:
Rajesh Mandal
Meaning of law of supply
The law of supply is the part of
microeconomics . It is states that , All
other things remaining constant , then
the price of a goods and services will be
increases then the quantity supply of a
goods and services will be increases and
vice-versa
The law of supply says that ; as the
price of an item goes up suppliers will
attempt to maximize their profits by
increasing the number of item for sale
Supply Demand Price
Constant
Constant
Increases
Decreases
Rises
Falls
Constant
Constant
Rises
Falls
Falls
Increases
Assumption
The law supply is to apply the producer or seller
should aim at maximizing profit from production
or sell of the commodity .
 Higher price is needed to over to higher
marginal cost as output or supply is expand by the
firm .
The supply curve will be upward slopes from left
to right.
 In a competitive environment no individual
firm has a monopoly over the production of the
commodity , that means the monopolist is a price
maker and not a price taker.
Conclusion
The law of supply describes
a simple relationship between
price and supply the price of an
item the more suppliers will
make.
Elasticity of Supply
If the percentage change in quantity supplied
associated with a percentage change in price ,is
called as elasticity of supply .
Types of elasticity of supply
Perfectly elasticity of supply
Perfectly in elasticity of supply
Unitary elasticity of supply
Relatively elasticity of supply
Relatively in elasticity of supply
THANK YOU

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Presentation on law of supply.

  • 2. Content  What is law of supply Supply curve analysis Assumption Conclusion Presented by: Rajesh Mandal
  • 3. Meaning of law of supply The law of supply is the part of microeconomics . It is states that , All other things remaining constant , then the price of a goods and services will be increases then the quantity supply of a goods and services will be increases and vice-versa
  • 4. The law of supply says that ; as the price of an item goes up suppliers will attempt to maximize their profits by increasing the number of item for sale Supply Demand Price Constant Constant Increases Decreases Rises Falls Constant Constant Rises Falls Falls Increases
  • 5.
  • 6. Assumption The law supply is to apply the producer or seller should aim at maximizing profit from production or sell of the commodity .  Higher price is needed to over to higher marginal cost as output or supply is expand by the firm . The supply curve will be upward slopes from left to right.  In a competitive environment no individual firm has a monopoly over the production of the commodity , that means the monopolist is a price maker and not a price taker.
  • 7. Conclusion The law of supply describes a simple relationship between price and supply the price of an item the more suppliers will make.
  • 8. Elasticity of Supply If the percentage change in quantity supplied associated with a percentage change in price ,is called as elasticity of supply .
  • 9. Types of elasticity of supply Perfectly elasticity of supply Perfectly in elasticity of supply Unitary elasticity of supply Relatively elasticity of supply Relatively in elasticity of supply
  • 10.