Supply

Definition

Supply of a commodity can be defined as the amount of goods that producers are willing to supply / sell at a given price.

Supply and Price

Price usually is a major determinant in the quantity supplied. In virtually all cases supply increases as price increases and vice versa.

This is because producers want to make profit.
- If the good is sold at a high price they want more quantities of it to be sold and they will make
more profit.
- and if it is sold at a lower price they will either make very less profit or a loss.

Supply Schedule

Supply curve shows the relationship between supply and price.

supply curve displays the quantity supplied on the x-axis as the independent variable and price on the y-axis as the dependent variable.




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1 comment:

pryas said...

Very useful blog...