SlideShare a Scribd company logo
1 of 5
Download to read offline
Supply
•Supply is the quantity of a commodity
offered for sale in the market at a particular
price.
Price (Rs) Quantity
Supplied (Kg)
5 40
10 60
15 80
20 100
25 120
Supply Schedule
Supply Curve
Supply schedule is a table that shows various
quantities of a good or service that sellers are
willing and able to offer for sale at various
possible prices during some specified period.
The supply curve is a graph showing various
quantities of a good or service that sellers are
willing and able to offer for sale at various
possible prices. The supply curve slopes
upwards because of the direct relationship
between price and quantity supplied.
• Why there is a direct relationship between price
and quantity supplied?
•The main reason is that higher prices serve as an
incentive for sellers to offer greater quantity for
sale.
• The sellers or producers can be induced to
produce and offer a greater quantity for sale by
higher prices.
•It is assumed that sellers or producers aim to
maximise profit from the production and sale of
the commodity.
• The higher the prices of the commodity, other things being equal,
the greater the potential gain producers can expect from
producing and supplying it in the market. Moreover, increases in
price may invite new suppliers in the market.
• Assumptions of the Law of Supply: There are various non-
price factors that affect supply. Non price factors like state of
technology, prices of factors of production, prices of other
products, number of producers in the market etc are assumed to
remain constant.
Law of Supply
• The functional relationship between price and quantity supplied is called
the law of supply. According to the law of supply, as the price of the
commodity falls, the quantity supplied decreases or alternatively, as the price
of the commodity rises the quantity supplied increases, other things being
equal. Therefore, there is a direct relationship between of the commodity and
quantity supplied.
• The law of supply can be illustrated through a supply schedule and supply
curve.

More Related Content

Similar to Supply.pptx

Similar to Supply.pptx (20)

Complilation powepoint final
Complilation powepoint finalComplilation powepoint final
Complilation powepoint final
 
Supply
SupplySupply
Supply
 
Price theory- Demand and Supply
Price theory- Demand and Supply Price theory- Demand and Supply
Price theory- Demand and Supply
 
Theory and law of supply
Theory and law of supplyTheory and law of supply
Theory and law of supply
 
Law-Of-Supply-_-Elasticity-of-Supply-PPT.ppt
Law-Of-Supply-_-Elasticity-of-Supply-PPT.pptLaw-Of-Supply-_-Elasticity-of-Supply-PPT.ppt
Law-Of-Supply-_-Elasticity-of-Supply-PPT.ppt
 
Supply
SupplySupply
Supply
 
Illustration of non price determinants.
Illustration of non price determinants.Illustration of non price determinants.
Illustration of non price determinants.
 
00
0000
00
 
Basic concepts of economics
Basic concepts of economicsBasic concepts of economics
Basic concepts of economics
 
Supply power point_consumer_econ
Supply power point_consumer_econSupply power point_consumer_econ
Supply power point_consumer_econ
 
Supply power point_consumer_econ
Supply power point_consumer_econSupply power point_consumer_econ
Supply power point_consumer_econ
 
DemandSupplyMarketEquilibrium.ppt
DemandSupplyMarketEquilibrium.pptDemandSupplyMarketEquilibrium.ppt
DemandSupplyMarketEquilibrium.ppt
 
Law of supply
Law of supplyLaw of supply
Law of supply
 
Classical supply and demand.pptx
Classical supply and demand.pptxClassical supply and demand.pptx
Classical supply and demand.pptx
 
Market Equilibrium.pdf
Market Equilibrium.pdfMarket Equilibrium.pdf
Market Equilibrium.pdf
 
The theory of demand and supply
The theory of demand and supplyThe theory of demand and supply
The theory of demand and supply
 
Supply theory
Supply theorySupply theory
Supply theory
 
Demand 2
Demand 2Demand 2
Demand 2
 
Module 1 chap2-market demand & supply
Module 1 chap2-market demand & supplyModule 1 chap2-market demand & supply
Module 1 chap2-market demand & supply
 
SUPPLY ANALYSIS for btech students.pptx
SUPPLY ANALYSIS  for btech students.pptxSUPPLY ANALYSIS  for btech students.pptx
SUPPLY ANALYSIS for btech students.pptx
 

More from Sharin1234

Economic laws
Economic laws Economic laws
Economic laws Sharin1234
 
Economic theory
Economic theory Economic theory
Economic theory Sharin1234
 
The classical theory of Economic Development
The classical theory of Economic DevelopmentThe classical theory of Economic Development
The classical theory of Economic DevelopmentSharin1234
 
Theory of Technical dualism
Theory of Technical dualism Theory of Technical dualism
Theory of Technical dualism Sharin1234
 
Theory of Financial Dualism
Theory of  Financial Dualism Theory of  Financial Dualism
Theory of Financial Dualism Sharin1234
 
Material Balance Model
Material Balance Model Material Balance Model
Material Balance Model Sharin1234
 
Economy - environment interaction(Linkages)
Economy - environment interaction(Linkages)Economy - environment interaction(Linkages)
Economy - environment interaction(Linkages)Sharin1234
 

More from Sharin1234 (8)

Economic laws
Economic laws Economic laws
Economic laws
 
Economic theory
Economic theory Economic theory
Economic theory
 
The classical theory of Economic Development
The classical theory of Economic DevelopmentThe classical theory of Economic Development
The classical theory of Economic Development
 
Theory of Technical dualism
Theory of Technical dualism Theory of Technical dualism
Theory of Technical dualism
 
Theory of Financial Dualism
Theory of  Financial Dualism Theory of  Financial Dualism
Theory of Financial Dualism
 
Lewis model
Lewis model Lewis model
Lewis model
 
Material Balance Model
Material Balance Model Material Balance Model
Material Balance Model
 
Economy - environment interaction(Linkages)
Economy - environment interaction(Linkages)Economy - environment interaction(Linkages)
Economy - environment interaction(Linkages)
 

Recently uploaded

Mythology Quiz-4th April 2024, Quiz Club NITW
Mythology Quiz-4th April 2024, Quiz Club NITWMythology Quiz-4th April 2024, Quiz Club NITW
Mythology Quiz-4th April 2024, Quiz Club NITWQuiz Club NITW
 
Man or Manufactured_ Redefining Humanity Through Biopunk Narratives.pptx
Man or Manufactured_ Redefining Humanity Through Biopunk Narratives.pptxMan or Manufactured_ Redefining Humanity Through Biopunk Narratives.pptx
Man or Manufactured_ Redefining Humanity Through Biopunk Narratives.pptxDhatriParmar
 
Q-Factor General Quiz-7th April 2024, Quiz Club NITW
Q-Factor General Quiz-7th April 2024, Quiz Club NITWQ-Factor General Quiz-7th April 2024, Quiz Club NITW
Q-Factor General Quiz-7th April 2024, Quiz Club NITWQuiz Club NITW
 
How to Uninstall a Module in Odoo 17 Using Command Line
How to Uninstall a Module in Odoo 17 Using Command LineHow to Uninstall a Module in Odoo 17 Using Command Line
How to Uninstall a Module in Odoo 17 Using Command LineCeline George
 
Decoding the Tweet _ Practical Criticism in the Age of Hashtag.pptx
Decoding the Tweet _ Practical Criticism in the Age of Hashtag.pptxDecoding the Tweet _ Practical Criticism in the Age of Hashtag.pptx
Decoding the Tweet _ Practical Criticism in the Age of Hashtag.pptxDhatriParmar
 
Blowin' in the Wind of Caste_ Bob Dylan's Song as a Catalyst for Social Justi...
Blowin' in the Wind of Caste_ Bob Dylan's Song as a Catalyst for Social Justi...Blowin' in the Wind of Caste_ Bob Dylan's Song as a Catalyst for Social Justi...
Blowin' in the Wind of Caste_ Bob Dylan's Song as a Catalyst for Social Justi...DhatriParmar
 
BIOCHEMISTRY-CARBOHYDRATE METABOLISM CHAPTER 2.pptx
BIOCHEMISTRY-CARBOHYDRATE METABOLISM CHAPTER 2.pptxBIOCHEMISTRY-CARBOHYDRATE METABOLISM CHAPTER 2.pptx
BIOCHEMISTRY-CARBOHYDRATE METABOLISM CHAPTER 2.pptxSayali Powar
 
CLASSIFICATION OF ANTI - CANCER DRUGS.pptx
CLASSIFICATION OF ANTI - CANCER DRUGS.pptxCLASSIFICATION OF ANTI - CANCER DRUGS.pptx
CLASSIFICATION OF ANTI - CANCER DRUGS.pptxAnupam32727
 
Tree View Decoration Attribute in the Odoo 17
Tree View Decoration Attribute in the Odoo 17Tree View Decoration Attribute in the Odoo 17
Tree View Decoration Attribute in the Odoo 17Celine George
 
Congestive Cardiac Failure..presentation
Congestive Cardiac Failure..presentationCongestive Cardiac Failure..presentation
Congestive Cardiac Failure..presentationdeepaannamalai16
 
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...Association for Project Management
 
4.11.24 Poverty and Inequality in America.pptx
4.11.24 Poverty and Inequality in America.pptx4.11.24 Poverty and Inequality in America.pptx
4.11.24 Poverty and Inequality in America.pptxmary850239
 
Healthy Minds, Flourishing Lives: A Philosophical Approach to Mental Health a...
Healthy Minds, Flourishing Lives: A Philosophical Approach to Mental Health a...Healthy Minds, Flourishing Lives: A Philosophical Approach to Mental Health a...
Healthy Minds, Flourishing Lives: A Philosophical Approach to Mental Health a...Osopher
 
Unraveling Hypertext_ Analyzing Postmodern Elements in Literature.pptx
Unraveling Hypertext_ Analyzing  Postmodern Elements in  Literature.pptxUnraveling Hypertext_ Analyzing  Postmodern Elements in  Literature.pptx
Unraveling Hypertext_ Analyzing Postmodern Elements in Literature.pptxDhatriParmar
 
MS4 level being good citizen -imperative- (1) (1).pdf
MS4 level   being good citizen -imperative- (1) (1).pdfMS4 level   being good citizen -imperative- (1) (1).pdf
MS4 level being good citizen -imperative- (1) (1).pdfMr Bounab Samir
 

Recently uploaded (20)

Mythology Quiz-4th April 2024, Quiz Club NITW
Mythology Quiz-4th April 2024, Quiz Club NITWMythology Quiz-4th April 2024, Quiz Club NITW
Mythology Quiz-4th April 2024, Quiz Club NITW
 
CARNAVAL COM MAGIA E EUFORIA _
CARNAVAL COM MAGIA E EUFORIA            _CARNAVAL COM MAGIA E EUFORIA            _
CARNAVAL COM MAGIA E EUFORIA _
 
Spearman's correlation,Formula,Advantages,
Spearman's correlation,Formula,Advantages,Spearman's correlation,Formula,Advantages,
Spearman's correlation,Formula,Advantages,
 
Man or Manufactured_ Redefining Humanity Through Biopunk Narratives.pptx
Man or Manufactured_ Redefining Humanity Through Biopunk Narratives.pptxMan or Manufactured_ Redefining Humanity Through Biopunk Narratives.pptx
Man or Manufactured_ Redefining Humanity Through Biopunk Narratives.pptx
 
Q-Factor General Quiz-7th April 2024, Quiz Club NITW
Q-Factor General Quiz-7th April 2024, Quiz Club NITWQ-Factor General Quiz-7th April 2024, Quiz Club NITW
Q-Factor General Quiz-7th April 2024, Quiz Club NITW
 
How to Uninstall a Module in Odoo 17 Using Command Line
How to Uninstall a Module in Odoo 17 Using Command LineHow to Uninstall a Module in Odoo 17 Using Command Line
How to Uninstall a Module in Odoo 17 Using Command Line
 
Decoding the Tweet _ Practical Criticism in the Age of Hashtag.pptx
Decoding the Tweet _ Practical Criticism in the Age of Hashtag.pptxDecoding the Tweet _ Practical Criticism in the Age of Hashtag.pptx
Decoding the Tweet _ Practical Criticism in the Age of Hashtag.pptx
 
Blowin' in the Wind of Caste_ Bob Dylan's Song as a Catalyst for Social Justi...
Blowin' in the Wind of Caste_ Bob Dylan's Song as a Catalyst for Social Justi...Blowin' in the Wind of Caste_ Bob Dylan's Song as a Catalyst for Social Justi...
Blowin' in the Wind of Caste_ Bob Dylan's Song as a Catalyst for Social Justi...
 
BIOCHEMISTRY-CARBOHYDRATE METABOLISM CHAPTER 2.pptx
BIOCHEMISTRY-CARBOHYDRATE METABOLISM CHAPTER 2.pptxBIOCHEMISTRY-CARBOHYDRATE METABOLISM CHAPTER 2.pptx
BIOCHEMISTRY-CARBOHYDRATE METABOLISM CHAPTER 2.pptx
 
CLASSIFICATION OF ANTI - CANCER DRUGS.pptx
CLASSIFICATION OF ANTI - CANCER DRUGS.pptxCLASSIFICATION OF ANTI - CANCER DRUGS.pptx
CLASSIFICATION OF ANTI - CANCER DRUGS.pptx
 
Tree View Decoration Attribute in the Odoo 17
Tree View Decoration Attribute in the Odoo 17Tree View Decoration Attribute in the Odoo 17
Tree View Decoration Attribute in the Odoo 17
 
Congestive Cardiac Failure..presentation
Congestive Cardiac Failure..presentationCongestive Cardiac Failure..presentation
Congestive Cardiac Failure..presentation
 
prashanth updated resume 2024 for Teaching Profession
prashanth updated resume 2024 for Teaching Professionprashanth updated resume 2024 for Teaching Profession
prashanth updated resume 2024 for Teaching Profession
 
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
 
4.11.24 Poverty and Inequality in America.pptx
4.11.24 Poverty and Inequality in America.pptx4.11.24 Poverty and Inequality in America.pptx
4.11.24 Poverty and Inequality in America.pptx
 
Mattingly "AI & Prompt Design" - Introduction to Machine Learning"
Mattingly "AI & Prompt Design" - Introduction to Machine Learning"Mattingly "AI & Prompt Design" - Introduction to Machine Learning"
Mattingly "AI & Prompt Design" - Introduction to Machine Learning"
 
Introduction to Research ,Need for research, Need for design of Experiments, ...
Introduction to Research ,Need for research, Need for design of Experiments, ...Introduction to Research ,Need for research, Need for design of Experiments, ...
Introduction to Research ,Need for research, Need for design of Experiments, ...
 
Healthy Minds, Flourishing Lives: A Philosophical Approach to Mental Health a...
Healthy Minds, Flourishing Lives: A Philosophical Approach to Mental Health a...Healthy Minds, Flourishing Lives: A Philosophical Approach to Mental Health a...
Healthy Minds, Flourishing Lives: A Philosophical Approach to Mental Health a...
 
Unraveling Hypertext_ Analyzing Postmodern Elements in Literature.pptx
Unraveling Hypertext_ Analyzing  Postmodern Elements in  Literature.pptxUnraveling Hypertext_ Analyzing  Postmodern Elements in  Literature.pptx
Unraveling Hypertext_ Analyzing Postmodern Elements in Literature.pptx
 
MS4 level being good citizen -imperative- (1) (1).pdf
MS4 level   being good citizen -imperative- (1) (1).pdfMS4 level   being good citizen -imperative- (1) (1).pdf
MS4 level being good citizen -imperative- (1) (1).pdf
 

Supply.pptx

  • 1. Supply •Supply is the quantity of a commodity offered for sale in the market at a particular price.
  • 2. Price (Rs) Quantity Supplied (Kg) 5 40 10 60 15 80 20 100 25 120 Supply Schedule Supply Curve Supply schedule is a table that shows various quantities of a good or service that sellers are willing and able to offer for sale at various possible prices during some specified period. The supply curve is a graph showing various quantities of a good or service that sellers are willing and able to offer for sale at various possible prices. The supply curve slopes upwards because of the direct relationship between price and quantity supplied.
  • 3. • Why there is a direct relationship between price and quantity supplied? •The main reason is that higher prices serve as an incentive for sellers to offer greater quantity for sale. • The sellers or producers can be induced to produce and offer a greater quantity for sale by higher prices. •It is assumed that sellers or producers aim to maximise profit from the production and sale of the commodity.
  • 4. • The higher the prices of the commodity, other things being equal, the greater the potential gain producers can expect from producing and supplying it in the market. Moreover, increases in price may invite new suppliers in the market. • Assumptions of the Law of Supply: There are various non- price factors that affect supply. Non price factors like state of technology, prices of factors of production, prices of other products, number of producers in the market etc are assumed to remain constant.
  • 5. Law of Supply • The functional relationship between price and quantity supplied is called the law of supply. According to the law of supply, as the price of the commodity falls, the quantity supplied decreases or alternatively, as the price of the commodity rises the quantity supplied increases, other things being equal. Therefore, there is a direct relationship between of the commodity and quantity supplied. • The law of supply can be illustrated through a supply schedule and supply curve.