A price increase leads to an increase in the quantity of a commodity with that price; and a decrease in the price leads to a decrease in the commodity’s quantity. Increasing price of a product means that more resources are devoted as a compensation for its market exchange. And subsequently, more of it can be delivered. In reverse, diminishing price leads to lesser wealth allocated to the production of the good and further restrictions in the quantity of it. Increasing price of the deficit commodity tends to increase the supply of it, and decreasing price of the surplus commodity tends to decrease the supply.
In order to comprehend the ontological construction above, please refer to other my post for all notions in italic.
Historical Backdrop
• JOHN LOCK Some Considerations on the Consequences of the Lowering of Interest and the Raising of the Value of Money: rent.
• JAMES DENHAM-STEUART Inquiry into the Principles of Political Economy: supply.
• GREGORY KING Natural and Political Observations and Conclusions upon the State and Condition of England: law of supply.
• PIETRO VERRI Meditations on Economic Politics: mathematical form of the law of supply.
