To evaluate: The effect on supply with greater incentives of profits.
Explanation of Solution
Law of supply says that other variables that remain constant, the
Law of supply describes the actions of the manufacturer at the time of shifts in products and services prices. As the price of a good rises, the producer raises the production because of higher demand and in order to make a profit.So according to the supply law, the greater the price of a good, the greater will be the motivation for the supplier to produce more goods.
Introduction: Supply is a basic economic term which represents the total amount accessible to consumers for a particular product or service. Supply may be related to quantity availability at a given price, or quantity available over a variety of prices.
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