[This is part of the series: The Complete Guide To Economics 101.]
What is the law of supply?
The Law Of Supply says that all else equal, the quantity supplied of a good, or service, will increase when the price of that good or service increases.
Conversely, the quantity supplied of a good, or service, will decrease when the price of that good or service decreases.
- If the price of cotton decreases, on average, fewer farmers will plant and grow cotton.
- If the price of bananas increases, on average, more farmers will plant and grow bananas.
- If the price of pedicures decreases, on average, fewer people will give pedicures.
- And if the price of lawn moving falls, on average, fewer people will want to mow lawns.