Monthly Archive: July 2015

Economics: The Law of Supply

We already talked about the Law of Demand. Now, we are going to talk about the Law of Supply. But first, let us review a term that we learned about when we discussed the Law of Demand. That term is ceteris paribus, or “all things being equal.” When we talk about a law in economics, and about how that law works, we always assume that there is nothing else outside the law that changes it. This is the starting point of understanding economics. For the Law of Supply, it is almost the reverse of the Law of Demand. Remember, in...