Producer always wants to sell his commodity at a higher price for maximising his profit. In other words, other things being equal, more is supplied at higher price and less at a lower price. Thus, price of commodity and its supply are positively related. In Functional form,
Where * refers to supply of the commodity and P for price.
Thus, supply function of a commodity represents a direct relationship between supply of commodity and its price. The law of supply states that other things remaining constant, the higher the price, the greater the quantity supplied or lower the price, the smaller the quantity supplied.
Or
Law of supply states the positive relationship between price of the commodity and its supply. That is the reason why supply curve slopes upward from left to right.
