1. I’mgoingto talk about the supply:
The supply isthe quantityof goodsandservices thata companyor producerswantto offerinthe
marketat differentprice levels. The offertable representsthe differentquantities of the goods
that the producers wantto offerforeach price.
The lawof supplyexpresses the directrelationthatexists betweenthe price andthe quantity
offered, whenthe price increases,the quantityofferedincreases.
The curve of offeris the graphicrepresentationof the relation betweenthe price of agood and
the quantityoffered.Whentrace the supplycurve of agood,we assume that all otherfactors
differentthanthe price that can affectthe quantityoffered,suchasthe pricesof the factorsused
inthe productionof the good
Finally,theequilibriumpointthatisthe quantity demandedisthe same tothe offered. this
amountis the balance amount. The equilibriumisthe intersectionof supplyanddemandcurves
and at that pointthere isno shortage andsurplus.