SUPPLY

SUPPLY

  

Definition Of Supply - Ability and willingness to sell        goods or services.

Law Of Supply- Positive relationship between price and quantity
 

PRICE(P) = INCREASE    QUANTITY (Qs)=     INCREASE

SUBSTITUTE GOODS Supply of product will decrease if the price of substitute product increase

COMPLEMENTARY GOODS If Price increase then the supply of complementary product increase

COST OF PRODUCTION Price of production increase, quantity supplied will decrease and vice versa

EXPECTED FUTURE PRICE If the price expecting increase, the quantity supplied now will decrease then the supply will shift to left

TECHNOLOGICAL ADVANCE Most important influences on supply existence of the new technology will reduce cost of production

NUMBER OF SELLERS The large number of firms supplying a product, the large quantity supplied of product and vice versa.