Supply
Economics notes
Supply
Supply refers to the quantity of a good or service that producers are willing and able to offer for sale at various prices during a given period. It represents the output or production capabilities of firms. Supply is influenced by factors such as price, input costs, technology, government regulations, and expectations. The law of supply states that as the price of a product increases, the quantity supplied tends to increase, ceteris paribus. Conversely, as the price decreases, the quantity supplied tends to decrease. Understanding supply is crucial for businesses to make production decisions, set prices, and analyze market dynamics.
What is supply in economics?
In economics, supply refers to the quantity of a good or service that producers are willing and able to offer for sale at various prices, assuming all other factors remain constant. It represents the relationship between price and quantity supplied.
How is supply different from quantity supplied?
Supply refers to the entire relationship between the price of a good and the quantity that producers are willing and able to offer for sale at that price. Quantity supplied, on the other hand, refers to a specific quantity that producers are willing to sell at a given price, holding other factors constant. Supply represents a range of possible quantities supplied at different price levels.
What factors influence supply?
Factors include input costs, technology, and government policies.