Share This Article:

Economic Definition of law of supply. Defined.

Offline Version: PDF

Term law of supply Definition: The direct relationship between supply price and the quantity supplied, ceteris paribus. This fundamental economic principle indicates that as the price of a commodity increases, then the quantity of the commodity that sellers are able and willing to sell in a given period of time, if other factors are held constant, also increases. This law, while not quite as iron-clad as the law of demand, is quite important to the study of markets.


« law of increasing opportunity cost | leading economic indicator »


Alphabetical Reference to Over 2,000 Economic Terms