Supply

Supply can be defined as the ‘quantity of a good which a seller is willing and able to sell at a particular price in a particular period of time’.

Factors influencing supply

  • Price of commodity
  • cost of production
  • Change in Technology
  • Availability of transportation facility
  • Government policy
  • Price of related goods

Law of supply

Other things remaining same more of a good is supplied at a higher price than at a lower price. So we can summarize that:

  • There is a direct relation between price and quantity supplied
  • Price is the most important factor that determines supplied
  • Assumption of ceteris paribus
Image result for supply curve
Supply curve

 


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