This PPT Made by me for My College Presentation.

1. Bhavesh ParmarBhavesh Parmar

2. Bhavesh ParmarBhavesh Parmar Vijay ParmarVijay Parmar
Darshil LathiwalaDarshil Lathiwala
Brijesh GabaniBrijesh Gabani
Nishith DarjiNishith Darji
Fundamental of EconomicFundamental of Economic
(Pro. Hard Patel)(Pro. Hard Patel)

3. ProductionProduction
StockStock
SupplySupply

4. ProductionProduction
• Total Number of unit which produce by Company.
Stock
• Total Number of Sellable unit.
SupplySupply
• Total Number of unit which is ready for Sell in Market.

5. ProductionProduction
StockStock
SupplySupply
Mr.PatelMr.Patel

6. Meaning of SupplyMeaning of Supply
• ““Supply means the Quantities that a seller isSupply means the Quantities that a seller is willingwilling
andand able toable to sell at different prices”sell at different prices”
• ““Supply is that part of stock which the producers areSupply is that part of stock which the producers are
willingwilling toto bring to the marketbring to the market andand offer foroffer for
salesale at a particular price”at a particular price”

7. Supply ScheduleSupply Schedule
 ““A Supply Schedule is a table that shows theA Supply Schedule is a table that shows the
relationship between therelationship between the price of goodprice of good and theand the
quantity suppliedquantity supplied ””

8. Quantity of Milk Offered (in Litres)Quantity of Milk Offered (in Litres)

10. Bhavesh ParmarBhavesh Parmar Vijay ParmarVijay Parmar
Darshil LathiwalaDarshil Lathiwala
Brijesh GabaniBrijesh Gabani
Nishith DarjiNishith Darji
Fundamental of EconomicFundamental of Economic
(Pro. Hard Patel)(Pro. Hard Patel)

11. IndexIndex
Law of Supply
Assumptions
ExtensionAnd Contraction of supply
Exceptions to Law of Supply

12. Law of SupplyLaw of Supply
““Other things remainingOther things remaining the same, as the price of athe same, as the price of a
Commodity rises, its supply isCommodity rises, its supply is extendedextended, and as the, and as the
price falls , its supplyprice falls , its supply contractedcontracted””

13. The term “other things remaining the same” refers to the
following assumptions in the law of supply:
1. Price of other goods are constant
2. There is no change in the state of technology
3. Prices of factors of production remain the same
4. There is no change in the taxation policy;
5. Goals of the producer remain the same.
6. No change in the number of firms in the market.
7. No change in the seller’s expectations regarding future prices.

14. Extension of supply
 When the price of a
commodity increases its
quantity supplied also
increases it is called the
extension of supply.

15. Contraction of supply
 When the price of
commodity decreases, the
quantity supplied of it also
decreases it is called the
contraction of supply.

16. Extension
Contraction

17. Exceptions to Law of Supply
As a general rule, supply curve slopes upwards, showing that quantity
supplied rises with a rise in price. However, in certain cases, positive
relationship between supply and price may not hold true.
1. Perishable Goods:
2. Rare Articles:

18. 1. Perishable Goods
 In case of perishable goods, like vegetables, fruits, etc., sellers will be
ready to sell more even if the prices are falling. It happens because
sellers cannot hold such goods for long.

19. 1.Rare Articles
 Rare, artistic and precious articles are also outside the scope of law
of supply. For example, supply of rare articles like painting of Mona
Lisa cannot be increased, even if their prices are increased.

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