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# Supply Analysis

supply is an amount of goods and services which a seller is willing to sale at a given time period at a given price. Meaning of Supply In simple words. other things remaining same. The term supply includes – • Stock for sale • Readiness/willingness to sale • Given amount/quantity of goods and services • Given price Given time period .

” • . “The quantity supplied refers to the quantity of a commodity offered for sale at a given price in a given market at a given time.” • Anatol Murad.“The supply of goods is the quantity offered for sale in a given market at a given time at various prices. Definition • Thomas .

SUPPLY SCHEDULE Individual Supply Schedule Price ( Rs.) Q. (Units) 1 10 2 20 3 30 4 40 5 50 .S.

Market Supply Schedule Price (Rs) Firm A Firm B Market Supply 1 10 5 15 2 20 10 30 3 30 20 50 4 40 30 70 5 50 40 90 .

SUPPLY CURVE • Individual Supply Curve • Market Supply Curve .

Law of Supply In Law of Supply. the greater the quantity supplied or the lower the price. the higher the price. other things being equal.” . the relation between price and supply of a commodity is studied. There is a positive relation between price and quantity supplied.“The Law of Supply states that. the smaller the quantity supplied. Qs =f (P) • Dooley . whereas other factors remain constant.

• Methods of product will not change. . • Taxation policy is constant. • Technology is constant. Assumptions: • Prices of a particular commodity are changeable. • Cost of production is constant. • Government policy is constant. • Prices of related goods remain constant. • Size of industry or number of firms is same.

(Units) 1 10 2 20 3 30 4 40 5 50 . Tabular Explanation Price ( Rs.S.) Q.

Factors Affecting Supply of Goods QS = Quantity Supplied P = Price of a commodity S = Subsidy PR = Price of related goods TX = Tax Pi = Price of inputs GF = Goal of firms SN = Number of suppliers PE = Price Expectations T = Technology GP = Government Policy .

Extension or Expansion of Supply 2. Decrease in Supply . Change in Supply • Movement along Supply Curve 1. Contraction of Supply • Shifting of Supply Curve 1. Increase in Supply 2.