The Law of supply?

Question

My Econ teacher told me that the law of supply stated that as supply increases, so does price. I can't understand this though. It doesn't make sense it completely defeats the ideaology behind wholesale. According to this, a Bentley should cost less than a Hynduai. Could someone please explain.

Answer 1

as supply increases and the merchant notices it selling they raise prices to turn a profit. but conversely bentley's are in short supply you have to also remember the value of rarity. people will pay more for things that are in scarce and unique.

Answer 2

"Other things remaining the same when price increases so the supply increases and vice verse" this is law of supply.

I think there is some mis-communication b/w your wording and your teacher's wording. Actually when price increases so the supply increases. Because when price increases suppliers sees more revenue/profit as we all know the TR = P.Q so the suppliers increase the supply.

I hope now you will understand Law of supply.