The relationship between quantity supplied and price is?

Answer 1

The idea behind supply and demand is the higher or lower the demand for a product, the higher or lower the price will be, respectively. the price will also depend on whether or not the seller has a large quantity of the product. lets say for instance that the wheat crop fails in the U.S.. Grocers now have an extremely limited supply of a popular item(flour). the price for the product will instantly jump up across the board for around a year, when the nationwide supply is refilled by the next years harvest. An exception to this idea is the concept of a sale. If a Grocer manages to get a hold of cheaper flour during the shortage, he can run the flour at a lower sale price compared to his competitors. this draws more customers into his store and drives profitability up. the grocer could also gain a larger supply of the flour at the same price and sell it 10-20 cents cheaper than his competitor while still making a profit on the sale.

When a grocer accidentally mistypes an order on his computer and gets a large quantity of product that does not sell quickly or the product expires quickly, he must also try to get rid of this product before the product expires. If the grocer accidentally orders way too much milk for example, the grocer must run a special in-store price to try and generate the extra buying power of more customers to make sure that he does not take a loss on the mistake on the mistake he/she made.

Answer 2

Mostly prices get higher when the quantity supplied is less, because if more people are willing to buy a smaller quantity, people are willing to pay more than when there's a large quantity of a product.

Also remember the economic rule of Demand creates supply. Thus Demand (A high price) would create a large quantity of a certain item because of the ability to sell one's goods for a high price.