the relationship between price and quantity supplied is positive or negative
The relationship between price and quantity supplied is generally positive or direct. This means that as the price of a good or service increases, the quantity supplied by producers also increases. Conversely, as the price decreases, the quantity supplied tends to decrease as well. This positive relationship is described by the law of supply, which states that there is a direct relationship between price and quantity supplied, assuming other factors remain constant.
The relationship between price and quantity supplied in economics is usually positive. This positive relationship is known as the law of supply. According to the law of supply, when the price of a product or service increases, the quantity supplied by producers also increases, and vice versa.
To understand why this relationship exists, we need to consider the basic principles of supply and demand. When the price of a product increases, producers are incentivized to supply more of that product because they can earn higher profits. As a result, they are willing to incur additional costs to produce and sell a greater quantity. On the other hand, when the price decreases, producers may choose to supply less because the lower price may not cover their costs or yield sufficient profits.
It's important to note that this relationship might not always be perfectly positive due to various factors such as production constraints, market conditions, and the availability of resources. However, in general, an increase in price tends to lead to an increase in the quantity supplied (positive relationship).