Theory of Supply:
Supply is of the scarce goods. It is the amount of a commodity
that sellers are able and willing to offer fore sale at
different price per unit of time.
There is direct relationship between the price of a
commodity and its quantity offered fore sale over a specified period of time.
explaining the law of supply we have stated that as price rise, the quantity
supplied increases and as price falls the quantity supplied
increases and as price provided other things remain the same.
When the supply of the commodity rises or falls
due to non-price determinants, the supply is said to have increased
decreased supply. The increases or decrease or the rise or fall in supply may
take place on account of various factors.
Supply Curve of Labor:
We have stated earlier those supply curves are
positively sloped. There can be sometime exceptions to the rule there is a
backward bending supply curve of labor.