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Q: Why do price and supply have a direct relationship?
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Related questions

Does a supply curve show a direct or inverse relationship between price and quantity supplied?

Yes, it does.


The relationship between quantity supplied and price is direct or inverse?

As quantity supplied goes up, price goes down. This is because the supply function is downward sloping. Thus, the relationship is inverse.


The relationship between quantity demanded and price is direct or inverse?

direct


What is quantity theory of money-fisher's version?

The quantity theory of money-fisher's version states that the money supply has a proportional and direct relationship with the price level.


The supply curve shows the relationship between?

Supply curve shows relationship between price of the particular commodity and the quantity supplied of that commodity at different price level.


The market supply curve is?

The market supply curve shows the amount of goods/services produced at any given price. There is a direct relationship between output and price. That is, if the price of goods and services is high, then sellers will produce a large number of goods and services. Conversely, if the price of goods/services is low, then output will also be low.


What is supply relationships?

I take it you mean what is the relationship of supply and demand. As the supply goes up the price will come down. As the demand goes up the price will go up. If the supply and demand are in balance the price will stay the same.


What is the difference between price and supply?

if the supply is low and the demand is high, then the price of the good will be high. if there is high supply but low demand, then the price will be low. the price of a good or service is determined by the relationship between supply and demand. look for any basic macro or micro economics books and it should give you a very good explanation on the subject also pay attention to the graphs of supply and demand and you will get a better understanding of the relationship between supply and demand.


What would happen to the supply The price of the commodity decreases?

If supply of a commodity decreases, the supply will fall. Prices and supply of good have positive relationship.


What is a graphical depiction of the supply schedule that illustrates that relationship between the price of a good and the quantity supplied?

Supply curve


Definition of supply schedule?

Supply Schedule- A table showing the relationship between the price of a good and the quantity supplied.


What is the relationship between the price of an item and the quantity demanded?

It is a direct relationship. As demand for an item rises, all else equal, price for an item will rise.