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Other things being equal, if the cost of production of a commodity is lower, quantitiew thereof will be supplied to the market?
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Other things being equal, if the cost of production of a commodity is ...
Introduction:
The law of supply states that other things remaining equal, the higher the price of a commodity, the larger the quantity of the commodity supplied to the market. In contrast, the lower the price of a commodity, the smaller the quantity of the commodity supplied to the market.

Explanation:
The cost of production is one of the factors that influence the supply of a commodity in the market. When the cost of production of a commodity is low, the following things happen:

1. Profitability: The producers will be able to make a reasonable profit even if they sell the commodity at a lower price because the cost of production is low.

2. Increased supply: Since the producers are making a profit at a lower price, they will be motivated to supply more of the commodity to the market.

3. Competition: If the cost of production is low, more producers may be attracted to the market, leading to increased competition. This competition will result in increased supply to the market.

4. Efficiency: When the cost of production is low, producers are likely to adopt more efficient production methods. This increased efficiency will also result in increased supply to the market.

Conclusion:
Therefore, other things remaining equal, when the cost of production is lower, the quantity of a commodity supplied to the market will be higher. This is because producers will be making a profit even if they sell the commodity at a lower price, leading to increased supply to the market. Increased competition and efficiency will also lead to increased supply.
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Other things being equal, if the cost of production of a commodity is lower, quantitiew thereof will be supplied to the market?
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Other things being equal, if the cost of production of a commodity is lower, quantitiew thereof will be supplied to the market? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Other things being equal, if the cost of production of a commodity is lower, quantitiew thereof will be supplied to the market? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Other things being equal, if the cost of production of a commodity is lower, quantitiew thereof will be supplied to the market?.
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