Supply in Economics
DEFINATION
Certainly! In economics, the concept of "supply" refers to the quantity of a good or service that producers are willing and able to offer for sale at different prices during a specific period.
Supply is the amount of goods or services that are available to be bought or sold. It is determined by a number of factors, including the cost of production, the availability of resources, and the level of demand.
Here are some examples of supply:
The number of cars produced by a car company in a year
The amount of wheat grown by farmers in a season
The number of haircuts offered by a barbershop in a week
The number of seats available on a flight
When supply is greater than demand, prices tend to fall. This is because businesses are willing to lower their prices in order to sell more products. When demand is greater than supply, prices tend to rise. This is because businesses have the power to charge higher prices when there is a shortage of goods or services
Here's a brief overview:
Law of Supply:
The law of supply states that, all else being equal, as the price of a good or service increases, the quantity supplied by producers increases, and vice versa.
This relationship is often illustrated by a supply curve, which is a graphical representation of the quantity of a good that producers are willing to supply at different prices.
Determinants of Supply:
Price of Inputs: The cost of resources, such as labor and raw materials, can influence production costs and, consequently, the supply of a product.
Technology: Advances in technology can enhance production efficiency, impacting the supply of goods and services.
Number of Producers: The quantity supplied in a market can be influenced by the number of producers or suppliers operating in that market.
Expectations: Anticipated future prices can influence current supply decisions. For example, if producers expect prices to rise in the future, they may decrease current supply to sell more at higher prices later.
Supply Curve:
The supply curve is typically upward-sloping, reflecting the positive relationship between price and quantity supplied.
Movements along the supply curve represent changes in quantity supplied in response to changes in price.
Market Equilibrium:
The equilibrium price and quantity occur where the supply curve intersects with the demand curve. At this point, the quantity supplied equals the quantity demanded, resulting in a stable market.
Elasticity of Supply:
Elasticity of supply measures how responsive the quantity supplied is to a change in price. If the quantity supplied changes significantly in response to a price change, supply is considered elastic; if it changes only slightly, supply is inelastic.
The supply of goods and services can be affected by a number of factors, including:
Government policy: Governments can influence the supply of goods and services through a variety of policies, such as taxes, subsidies, and regulations.
DEFINATION
Certainly! In economics, the concept of "supply" refers to the quantity of a good or service that producers are willing and able to offer for sale at different prices during a specific period.
Supply is the amount of goods or services that are available to be bought or sold. It is determined by a number of factors, including the cost of production, the availability of resources, and the level of demand.
Here are some examples of supply:
The number of cars produced by a car company in a year
The amount of wheat grown by farmers in a season
The number of haircuts offered by a barbershop in a week
The number of seats available on a flight
When supply is greater than demand, prices tend to fall. This is because businesses are willing to lower their prices in order to sell more products. When demand is greater than supply, prices tend to rise. This is because businesses have the power to charge higher prices when there is a shortage of goods or services
Here's a brief overview:
Law of Supply:
The law of supply states that, all else being equal, as the price of a good or service increases, the quantity supplied by producers increases, and vice versa.
This relationship is often illustrated by a supply curve, which is a graphical representation of the quantity of a good that producers are willing to supply at different prices.
Determinants of Supply:
Price of Inputs: The cost of resources, such as labor and raw materials, can influence production costs and, consequently, the supply of a product.
Technology: Advances in technology can enhance production efficiency, impacting the supply of goods and services.
Number of Producers: The quantity supplied in a market can be influenced by the number of producers or suppliers operating in that market.
Expectations: Anticipated future prices can influence current supply decisions. For example, if producers expect prices to rise in the future, they may decrease current supply to sell more at higher prices later.
Supply Curve:
The supply curve is typically upward-sloping, reflecting the positive relationship between price and quantity supplied.
Movements along the supply curve represent changes in quantity supplied in response to changes in price.
Market Equilibrium:
The equilibrium price and quantity occur where the supply curve intersects with the demand curve. At this point, the quantity supplied equals the quantity demanded, resulting in a stable market.
Elasticity of Supply:
Elasticity of supply measures how responsive the quantity supplied is to a change in price. If the quantity supplied changes significantly in response to a price change, supply is considered elastic; if it changes only slightly, supply is inelastic.
The supply of goods and services can be affected by a number of factors, including:
Government policy: Governments can influence the supply of goods and services through a variety of policies, such as taxes, subsidies, and regulations.
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LearningTranscript
00:00Hello viewers welcome to the YouTube channel Roshni with Inna. Today I will
00:05discuss the topic supply in economics. Definition. Centennially in economics the
00:13concept of supply refers to the quantity of goods services that producers are
00:20willing and able to offer for sale at different prices during a specific
00:26period. Supply is the amount of goods or services that are available to be bought
00:33or sold. It is determined by a number of factors including the cost of
00:39productions, the availability of resources and the level of demand. Here
00:45are some examples of supply. The number of cars produced by a car company in a
00:52year, the amount of weight grown by a farmers in a season, the number of hair
01:00curls offered by a barber shop in a week, the number of seats available on a
01:06flight. When supply is greater than demand prices tend to fall. This is
01:15because businesses are willing to lower their prices in order to sell more
01:20products. When demand is greater than supply prices tend to rise. This is
01:28because businesses have the power to charge higher prices when there is a
01:35shortage of goods and services. Here's a brief overview. Law of supply. The law of
01:44supply states that all else being equal as the price of goods or services
01:51increases. The quantity supplied by producers increases and vice versa. This
01:59relationship is often illustrated by a supply curve which is graphical
02:05representations of the quantity of goods that producers are willing to supply at
02:12different prices. Determinants of supply. Price of inputs, the cost of resources
02:21such as labor and raw materials can influence production cost and
02:28consequently the supply of product. Technology, advances in technology can
02:34enhance production efficiency impacting the supply of goods and services. Number
02:42of producers. The quantity supplied in a market can be influenced by the number
02:48of producers or suppliers operating in that market. Expectations. Anticipated
02:56future prices can influence current supply decisions. For example, if
03:02producers expect prices to rise in the future they may decrease. Current
03:10supplier to sell more at higher prices later. Supply curve. The supply curve is
03:18typically upward sloping reflecting the positive relationship between price and
03:25quantity supplied. Movement along the supply curve represent changes in
03:32quantity supplied in response to change in price. Market equilibrium. The
03:40equilibrium prices and quantity occur when where the supply curving intersects
03:48with a demand curve. At the point the quantity supplied equals the quantity
03:54demanded resulting in a stable market. Elasticity of supply. Elasticity of
04:05supply measures how responsive the quantity supplied is to a change in
04:11price. If the quantity supplied changes is significantly in response to a price
04:17change. Supply is considered elastic. If it changes only slightly, supply is
04:26inelastic. The supply of goods and services can be affected by a number of
04:33factors including government policy. Governments can influence the supply of
04:39goods and services through a variety of policies such as taxes, subsidies and
04:45regulations. Technology. Technological advances can lead to new and more
04:51efficient phase to producing goods and services which can increase supply.
04:58Natural disasters. Natural disasters can disrupt the production and
05:07distributions of goods and services which can lead to shortage and price
05:12increases. Economic conditions. Economic conditions can also affect the supply of
05:20goods and services. For example, during the recessions businesses may produce
05:26less because they are selling less. Thank you for your attention and interest in
05:32the supply and economics presentation. Thank you for choosing Roshni Binhena
05:37channel. Kindly share, like and subscribe.