Definition Of Supply
Economics notes
Definition Of Supply
➡️ Supply is the amount of a good or service that producers are willing and able to provide at a given price in a given period of time.
➡️ Supply is determined by the interaction of price and quantity, with higher prices leading to higher quantities supplied and lower prices leading to lower quantities supplied.
➡️ Supply is affected by factors such as production costs, technology, taxes, subsidies, and the number of suppliers in the market.
What is the definition of supply in economics?
Supply refers to the quantity of a good or service that producers are willing and able to offer for sale at a given price and time period.
How does the law of supply relate to the definition of supply?
The law of supply states that as the price of a good or service increases, the quantity supplied by producers also increases, ceteris paribus. This means that the definition of supply includes the relationship between price and quantity supplied.
What factors can cause a shift in the supply curve?
Factors that can cause a shift in the supply curve include changes in production costs, technology, government policies, natural disasters, and the number of producers in the market. These factors can affect the quantity of a good or service that producers are willing and able to offer for sale at any given price.