supply

 MEANING:

The fundamental
economic concept that
states the total amount of a
specified product or service that is
available to customers. 
When supply
exceeds demand for a product or
service, the prices of said product
fall.
DEFINITION:

Supply:
It refers to the
quantity of a commodity
that a firm is willing and
able to offer for sale, at
each possible price during
a given period of time.
1. PRICE OR COST OF PRODUCT

Higher the price larger the supply.

Price is the incentive for the producers and
sellers to supply more.
2. PRICE OF OTHER COMMODITIES

The supply of a commodity

depends not only upon its price but also
price of other commodities.
3. NATURAL FACTORS

In agriculture, natural factors like

monsoon, climate etc. play a vital role in
determining production level.
4. TECHNOLOGY

One of the most critical supply factors.

A better and more modern technology
enhances a product’s production,
resulting in an increase in the product’s
5. GOVERNMENT TAXES AND
SUBSIDIES

Subsidies encourage the

producers to produce more. Taxes both
direct and indirect kill the ability and
willingness to produce more.
6. THE FIRM’S GOALS AND
OBECTIVES

When the goal of the firm is

sales maximum or improving market
share, the supply of the product is likely
to be higher.
7. DISASTERS

Natural disasters and war or starvation

must have an impact on the supply of products.
Exampel shortages of products.