Supply analysis Its related with the behavior of producer. Schedules of qty of commodities dt is offered for sale Supply is different than stock Stock is totl volume of commodities brought into market for sale. “amt of commodity or service that producers are wlling & able to offer far a sale at a given price at a particular period of time or any period of time Law of supply Other thins being same, as price of a commodity rises ,its supply is extended & price falls, its supply is contracted. Supply schedule Fig…. Supply curve Fig… Assumptions of No of firms in mkt same Production sld not change Mkt prices of related goods sld not change Mtav same No other inputs sld b available Features of.. Direct r/n b/n qty supplied & price Supply is dependent price is independent Not a universal law cUrve slopes upwards from left o right Exceptions to.. Price rise or low supply has not influence Curve slopes backwards Ex subsistence farming When seller badly needs money Not interested in max profits Auction sale exceptional Get rid of goods Determinants of supply Fig… Supply function Qx = F(Px Py PI Pi T M T ELASTICITY OF SUPPLY Response of supply to change in the price of a commodity Pe = % change in qty supplied % change in price Table…