The supply of a commodity may be defined

as the amount of the commodity which the

sellers are able to and willing to offer for
sale at a given price unit of time.
LAW OF SUPPLY
Marshall states the law as “other things being given, a
larger quantity will be offered for sale at a higher price
than at a lower price.”
IN CASE OF CIGARETTES
So when the price of cigarettes increases its supply also
increases and vice versa. It has a relatively inelastic supply
curve and the supply curve has a steep slope
SUPPLY DETERMINANTS
 PRICE OF THE COMMODITY
 PRICE OF RELATED PRODUCTS:
 STATE OF TECHNOLOGY
 COST OF PRODUCTION
SUPPLY DETERMINANTS
cont’d

 IMPORT &EXPORTS
 TRANSPORT FACILITIES
 CLIMATIC CONDITIONS
 FISCAL POLICY OF THE GOVERNMENT
SUPPLY DETERMINANTS
cont’d

 SELLERS EXPECTATIONS
 NATURAL RESOURCES
 NATURAL CALAMITIES
 TIME PERIOD