Positive Relationship between Supply and Price

The relationship between the supply of a good and its price is a positive relationship. This means that as the price of a good increases, the quantity supplied of that good also increases. Similarly, as the price of a good decreases, the quantity supplied of that good also decreases.

Factors Affecting Supply and Price

There are several factors that can affect the supply and price of a good, including:

1. Production Costs: If the cost of producing a good increases, it becomes more expensive for the supplier to produce that good. This can lead to a decrease in the supply of that good, which can cause the price to increase.

2. Technology: Advances in technology can make it easier and cheaper to produce certain goods. This can increase the supply of those goods, which can cause the price to decrease.

3. Competition: If there are many suppliers of a particular good, this can increase the supply of that good and cause the price to decrease. On the other hand, if there are few suppliers of a particular good, this can decrease the supply of that good and cause the price to increase.

4. Government Policies: Government policies can also affect the supply and price of goods. For example, if the government imposes a tax on a particular good, this can increase the cost of producing that good, which can decrease the supply and increase the price.

Conclusion

In conclusion, the relationship between the supply of a good and its price is a positive relationship. As the price of a good increases, the quantity supplied of that good also increases. Similarly, as the price of a good decreases, the quantity supplied of that good also decreases. There are several factors that can affect the supply and price of goods, including production costs, technology, competition, and government policies.