If the price of something goes up, companies are willing (and able) to produce more of it.
Log in vanemi96 8 years agoPosted 8 years ago. Direct link to vanemi96's post “so just to be clear with ...” so just to be clear with the difference between law of demand and law of supply. • (57 votes) Stefan van der Waal 8 years agoPosted 8 years ago. Direct link to Stefan van der Waal's post “Yes, the law of demand is...” Yes, the law of demand is about consumers who buy stuff and the law of supply is about producers who make and sell stuff. (37 votes) Gabriel 8 years agoPosted 8 years ago. Direct link to Gabriel's post “Is the law of supply uniq...” Is the law of supply unique to capitalist economies? • (12 votes) Parker Fowler 8 years agoPosted 8 years ago. Direct link to Parker Fowler's post “The law of supply in this...” The law of supply in this sense follows the ideas shown in the very first video Sal uses to discuss economics as a subject. That is, the ideas of Adam Smith. Adam Smith assumes that most actors in a society will behave in scenarios in a way that is in their best interest. Other economies, such as one in a socialist or monarchial country, do not assume this behavior. They assume that people behave in the interest of the common good, and the interest of the King/Queen respectively. So their supply laws would work differently. Economics as a general study on this website is assuming a capitalist (free) market. Francis Skinner 8 years agoPosted 8 years ago. Direct link to Francis Skinner's post “"A rise in price almost a...” "A rise in price almost always leads to an increase in the quantity supplied of that good or service, while a fall in price will decrease the quantity supplied." Ok, I....am a little confused... as usual.... In the first paragraph it states that a rise in the price leads to an increase of a product or Quantity Supply, if that be true, when the price rises people tend not to buy a product/service or ration it, which would mean that the demand will decrease, so why would the quantity increase if the demand decreases ...or am I jumping ahead of myself or missing some pieces of the puzzle? And another question, does the producer not control the price of his good or service, why does it seem that the price influences the producer to produce and not the quantity demanded?...for example i would think that if you you're providing a service and you have a growing clientele then the price for your service or good will rise to cover overheads • (9 votes) Paul Leonard 8 years agoPosted 8 years ago. Direct link to Paul Leonard's post “I will try to answer your...” I will try to answer your first question. There are two Curves that need to be considered. The first, which Sal is talking about in your scenario, is the Supply Curve. With increase in Price, Suppliers will provide a higher Quantity. The Supply Curve, by itself, assumes nothing about the Quantity that will be consumed. The second curve is the Demand Curve, which determines consumption at any given Price. So we need to overlap the Supply Curve and the Demand Curve. Only at the point where the lines cross is the Market in Equilibrium where at a certain Price the Quantity Supplied equals Quantity Demand. If the Price is set above the Equilibrium Price, then the Quantity Supplied will be higher than the Quantity Demanded and there will be a surplus which will drive the Price back to the Equilibrium Price. If the Price is set below the Equilibrium Price, then the Quantity Supplied will be lower than the Quantity Demanded and there will be a shortage which will drive the Price back to the Equilibrium Price. At least that is my understanding. (28 votes) Syed Muhammad Aslam 8 years agoPosted 8 years ago. Direct link to Syed Muhammad Aslam's post “This law of supply explai...” This law of supply explained is from the producer or manufacturer's side. What about consumers' behaviors, that too can affect Law of Supply. • (4 votes) Tejas 8 years agoPosted 8 years ago. Direct link to Tejas's post “Consumer's behavior affec...” Consumer's behavior affects demand, not supply. Supply is how many units the seller will try to sell at a given price. It doesn't matter what consumers will try to do, because they are not the seller. (22 votes) Cysha 8 years agoPosted 8 years ago. Direct link to Cysha's post “Can someone please clarif...” Can someone please clarify this? • (6 votes) Tejas 8 years agoPosted 8 years ago. Direct link to Tejas's post “No. Suppliers don't actua...” No. Suppliers don't actually care how much people want something. They only care about the price they can sell it at. If there is high demand, then the price is going to be higher, but if the price is low, then it doesn't matter how much demand there is. (8 votes) aniish iyer 8 years agoPosted 8 years ago. Direct link to aniish iyer's post “If supply increases and t...” If supply increases and the population willing to buy is held constant, then isn't a scenario created where goods and services are in surplus and demand hasn't increased. Well in that case prices do go down do they? • (5 votes) Pedro IPF 8 years agoPosted 8 years ago. Direct link to Pedro IPF's post “The companies will compet...” The companies will compete with more offerers. Then, to be more competitive, they will improve services, reduce costs or decrease their prices. (5 votes) Ranveer Singh 8 years agoPosted 8 years ago. Direct link to Ranveer Singh's post “I just wanted to clarify ...” I just wanted to clarify if for example - A good here is a car.. so if the price of the car increases , lesser people will want to buy it right? if the income is normal. So in this case , quantity demanded is less due to the increase in price and then supply will decrease isn't it? Please correct me if I've gone wrong somewhere! • (2 votes) Vitaly Gavrosh 8 years agoPosted 8 years ago. Direct link to Vitaly Gavrosh's post “The idea of demand and su...” The idea of demand and supply laws is that all variables are held constant except for a price. In this topics price is changed for whatever reasons and it is the given. What you are talking about is relationship between the supply and the demand, I think it will covered in the next tutorial. (7 votes) s23100393 a year agoPosted a year ago. Direct link to s23100393's post “How will Ps5 be impacted ...” How will Ps5 be impacted if they demand more, but the price decreases? • (4 votes) misspukeko 8 months agoPosted 8 months ago. Direct link to misspukeko's post “if the price decreases it...” if the price decreases it wont be as profitable to make ps5 for sony and they might produce less consoles. a lower price leads to a higher quantity of ps5 demanded by the customers. Maybe they'll be a ps5 shortage but we haven't learnt about supply shortages yet (1 vote) Nil Tuğçe Özer 6 years agoPosted 6 years ago. Direct link to Nil Tuğçe Özer's post “what do you mean by sayin...” what do you mean by saying If the price of something goes up, companies are ABLE to produce more of it. • (2 votes) Andrew M 6 years agoPosted 6 years ago. Direct link to Andrew M's post “They won't produce someth...” They won't produce something that they can't make money selling. (4 votes) Kirill Pertsev 7 years agoPosted 7 years ago. Direct link to Kirill Pertsev's post “I'm not sure about the se...” I'm not sure about the sentence: "Supply curves and supply schedules are tools used to summarize the relationship between supply and price". Shouldn't it be "relationship between quantity supplied and price"? • (2 votes)Want to join the conversation?
law of demand deals with consumers and what they buy
law of supply deals with producers and what they make
am i right? if not please tell me because that's what i understand
So if the price of the product is higher, the more the supply would be. And when the price is lower, the lower the supply would be too. But what about the demand? Aren't there supposed to have more supply when the price is low, when the demand is high?
