Law of Supply (Legal Of Supply) ~ In theory economy, Offer can be interpreted as the total number of goods and services offered in various possible prices prevailing in the market in one period.
Law offer explains that the quantity supplied of a good is proportional to the price level. That is, if the price of goods increases, the quantity of goods and services offered will also increase. Conversely, if prices fall, the quantity supplied of goods and services will also fall.
Law of Supply (Legal Of Supply)
Law of Supply (Legal Of Supply)

From the law of supply it is clear that the price and quantity supplied are positively correlated. So the goods and services offered at a certain time will depend on the price level. In conditions where other factors do not change. If goods and services increase, sellers tend to sell goods and services in greater quantities. And conversely, if the price of goods and services falls, sellers tend to reduce the amount of goods and services they offer.

Like the law Request law Offer in essence it is also a hypothesis which states that:

The relationship between the goods offered and the price of the goods where the relationship is inversely proportional, namely: when the price increases or rises, the number of goods offered will increase and vice versa if the price of goods decreases, the number of goods offered will decrease..

The higher the price of an item, the more quantity of that item will be offered by sellers. On the other hand, the lower the price of an item, the lower the quantity supplied of that good.

The law of supply states that the relationship between the price of a good/service and the quantity supplied is positive. That is, if the price increases, the quantity supplied also increases. Likewise, if the price falls, the quantity supplied will also decrease on the condition that ceteris paribus, that is, other factors are held constant.

Explicitly, the law of supply states that the higher the price level of an item, the greater the quantity of goods offered by the entrepreneur (ceteris paribus).

To understand the law of supply mentioned above, see the following example of a table of supply data against guitar prices.

Quantity Supplied (Q)

Reference :

  1. Daniel, Moehar. 2004. Introduction to Agricultural Economics. Jakarta: Earth Literacy.
  2. Firdaus, Muhammad. 2008. Agribusiness Management. Jakarta: Earth Literacy.
  3. Sukirno, S, 2011, “Introduction to Microeconomic Theory”, PT Raja Grafindo Persada, Third Edition, 26th Edition, Jakarta.
  4. Ahman, H., E., Rohmana, Y., 2007, “Economics in PIPS”, Second Edition, First Printing, Publisher Open University, Jakarta.
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